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Snowflake may collect and use operational Usage Data from Customer's use of the platform to develop and improve its products and services without requiring separate Customer consent under this provision. Usage Data containing Customer Confidential Information may only be shared with third parties if aggregated and anonymized such that Customer and Users cannot be identified.
This analysis describes what Snowflake's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision authorizes Snowflake to collect and use Usage Data, defined separately in the agreement, for internal product development and operations without a consent requirement beyond acceptance of the agreement. The restriction on sharing Usage Data containing Confidential Information with third parties applies only to identifiable data; anonymized and aggregated Usage Data may be shared without restriction.
Under this clause, Snowflake may use telemetry and operational data generated by Customer's use of the platform for product development purposes. Sharing of such data with third parties is restricted to aggregated and anonymized formats or to circumstances permitted by the confidentiality provisions, which limits but does not eliminate third-party access to operationally derived information.
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"Notwithstanding anything to the contrary in this Agreement, Snowflake may collect and use Usage Data to develop, improve, support, and operate its products and services. Snowflake may not share any Usage Data that includes Customer's Confidential Information with a third party except (a) in accordance with Section 5 (Confidentiality) of this Agreement, or (b) to the extent the Usage Data is aggregated and anonymized such that Customer and Customer's Users cannot be identified.Excerpt from Snowflake's Terms of Service
(1) REGULATORY LANDSCAPE: The Usage Data provision may engage GDPR where Usage Data constitutes or contains personal data of EU-based users, as processing for product improvement purposes may require a legal basis under GDPR that the contractual acceptance alone may not fully establish. CCPA similarly requires disclosure of data use purposes and may grant opt-out rights depending on the nature of the data and the Customer's classification. The FTC Act's prohibition on unfair or deceptive practices is also relevant to the scope of Usage Data collection disclosures. (2) GOVERNANCE EXPOSURE: Medium. The provision is standard in SaaS agreements but raises compliance questions where Usage Data may contain or be derived from personal data subject to data subject rights. The boundary between Usage Data and Customer Data or Confidential Information is defined in the agreement's definitions section and should be carefully reviewed to understand what operational telemetry falls within the scope of permissible collection. (3) JURISDICTION FLAGS: EU and UK Customers should assess whether the Usage Data provision is consistent with the DPA incorporated by reference, particularly regarding lawful basis for processing and data minimization principles under GDPR. California Customers should evaluate whether Usage Data processing for product improvement constitutes a sale or sharing of personal information under CPRA. (4) CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should review the definition of 'Usage Data' in the agreement to understand the specific categories of data Snowflake may collect and use. The provision does not include an opt-out mechanism for Usage Data collection, which may be a negotiation point for privacy-sensitive organizations. (5) COMPLIANCE CONSIDERATIONS: Legal teams should map the categories of data captured as Usage Data against applicable privacy frameworks to assess whether additional contractual protections or consent mechanisms are required. Where Usage Data may include behavioral or operational data attributable to identifiable individuals, data protection impact assessments may be warranted.
This provision authorizes Snowflake to collect and use Usage Data, defined separately in the agreement, for internal product development and operations without a consent requirement beyond acceptance of the agreement. The restriction on sharing Usage Data containing Confidential Information with third parties applies only to identifiable data; anonymized and aggregated Usage Data may be shared without restriction.
Under this clause, Snowflake may use telemetry and operational data generated by Customer's use of the platform for product development purposes. Sharing of such data with third parties is restricted to aggregated and anonymized formats or to circumstances permitted by the confidentiality provisions, which limits but does not eliminate third-party access to operationally derived information.
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