Figma
Weighted across nine legal categories. Lower is worse.
Executive summary
Figma's terms are strong on content ownership, you keep full rights to everything you create, and Figma may only use your content to run the service. The weak spots are the legal fine print. Figma can terminate your access at its sole discretion without notice, caps its liability at $100 or one year of fees, and makes you cover its legal costs for claims tied to your content. Disputes go to binding individual arbitration with a class action and jury trial waiver, though you can opt out of arbitration by writing to Figma within 30 days of accepting. Subscriptions auto-renew and fees are non-refundable, but you can cancel online from your account settings.
Category breakdown
Acceptance of Terms & Scope
Contract formation and service boundaries
The agreement clearly names the parties, defines the covered services, and puts the arbitration warning in capital letters at the top, which is better notice than most. However, you can be bound just by using the site, the terms also apply to visitors with no account, and many separate policies are pulled in by reference, so the full deal is spread across several documents.
Key findings
- Acceptance happens either by clicking to accept or simply by using the Services
- Terms apply even to visitors who never create an account
- Age requirement is legal age in your jurisdiction, and 18 or older for Figma AI
- Prominent all-caps arbitration notice appears at the very top of the terms
- Multiple external documents (AUP, DPA, Privacy Policy, AI Terms, Product-Specific Terms) are incorporated by reference
Evidence from the document
By indicating your acceptance of these Terms or by using the Services, you agree to be bound by these Terms.
Customer may only use the Services if Customer is of legal age to enter into these Terms according to the applicable laws and regulations in Customer’s jurisdiction (and, in the case of Figma AI, only if 18 years old or older).
Product-Specific Terms are hereby incorporated into these Terms by reference as if set forth herein and apply
Recommendations
- Read the Product-Specific Terms and AI Terms before using those features, since they are binding even though they live on separate pages
- If you use Figma for an employer, confirm you actually have authority to accept for that entity, because the terms say you bind it
- Note that just browsing Figma's websites puts you under these terms
User Accounts
Registration, suspension, and termination
Figma can terminate your access at its sole discretion, at any time, without notice and without liability, and there is no stated appeal process. The blow is softened by a pro rata refund if termination is not your fault and a 30 day window to download your content after termination, but the discretion itself is very broad, and Figma disclaims responsibility for account breaches that 2FA would have prevented.
Key findings
- Termination allowed at Figma's sole discretion, at any time, without notice or liability
- Pro rata refund of prepaid unused fees if Figma cancels and you are not in breach
- 30 day window to retrieve your content electronically after termination, then Figma may delete it
- You are responsible for all activity of your Authorized Users
- Figma disclaims liability for losses that would have been prevented by using 2FA
- Export control breach triggers immediate loss of all rights to your content
Evidence from the document
Figma may terminate Customer’s access to and use of the Services, at Figma’s sole discretion, at any time and without notice or liability to Customer
Figma will make all Customer Content then held by Figma available to you for electronic retrieval for a period of 30 days, but thereafter Figma may delete any stored Customer Content.
Figma will not be responsible for any damages, losses, or liability to Customer, Authorized Users, or anyone else if any event leading to such damages, losses, or liability would have been prevented by the use of 2FA.
Recommendations
- Keep local backups of important files, since content can be deleted 30 days after termination
- Turn on two-factor authentication, because Figma refuses responsibility for breaches 2FA would have stopped
- Download your data promptly if your account is ever terminated, the retrieval window is only 30 days
Intellectual Property & UGC
Content ownership and licensing
This is the strongest part of the agreement for you. You keep all rights to your content, and Figma's permission to use it is limited to the sole purpose of running the service. Usage data Figma keeps is limited to de-identified and aggregated form, and AI-related uses of your content are governed by separate settings you can control.
Key findings
- You retain all right, title, and interest in your content
- Figma may use your content only to provide and maintain the service
- Usage data is used only in de-identified and aggregated form, and expressly excludes your content
- Feedback you give can be used by Figma to improve its products, which is standard
- AI settings that apply to your content are controllable under the separate Figma AI terms
Evidence from the document
Customer retains all right, title, and interest in Customer Content, and Figma owns all right, title, and interest in the Services.
Customer authorizes Figma and its service providers to use Customer Content for the sole purpose of providing the Services and performing activities contemplated by these Terms
Figma will be free (during and after the Term) to use Usage Data in de-identified and aggregated form to maintain, improve, and enhance Figma’s products and services.
Recommendations
- Review the Figma AI terms and settings if you do not want AI features touching your files
- Remember that anything shared on Figma Community falls under additional Community terms
- Avoid sending detailed feature ideas as Feedback if you want to keep rights in them
Data Privacy
Data collection, usage, and protection
The terms commit Figma to physical, technical, and administrative security measures, incorporate a Data Processing Addendum, and publish a subprocessor list, which are good signs. Most of the actual privacy detail lives in the separate Privacy Policy that is not part of this document, so this score reflects only what the terms themselves promise.
Key findings
- Figma commits to security measures designed to protect your content from unauthorized access
- A Data Processing Addendum is incorporated into the terms
- Third party subprocessors are disclosed at a published list, and Figma stays responsible for them
- Usage data collection is limited to de-identified, aggregated use and excludes content
- Detailed collection, retention, and sharing practices are deferred to the separate Privacy Policy
Evidence from the document
Figma implements and maintains physical, technical, and administrative security measures designed to protect the applications and materials
Nevertheless, Figma will remain responsible for compliance with this Agreement.
For clarity, Usage Data excludes Customer Content itself.
Recommendations
- Read the Privacy Policy at figma.com/privacy, since the real data practices are defined there
- Check the subprocessor list if you care about where your data is processed
- Review the AI settings that control how AI features interact with your content
Payment & Subscriptions
Billing and subscription management
Auto-renewal is disclosed conspicuously in capital letters and you can cancel online through account settings, which meets modern consumer protection expectations. On the other side, fees are non-refundable, seat counts cannot be reduced mid-term, Figma can change prices at any time, and AI credit subscriptions renew monthly on their own schedule, so careless sign-ups can get expensive.
Key findings
- Subscriptions auto-renew monthly or annually at the then-current rate unless you cancel
- Cancellation is available online through account settings but only takes effect at the end of the current term
- Fees are non-refundable and purchased quantities cannot be decreased during the term
- Figma can change prices at any time, with a 30 day objection and refund right if a change hits mid-term
- AI Credits subscriptions renew monthly even on annual plans, and Pay-As-You-Go bills automatically in arrears
- Billing credits expire after one year
Evidence from the document
CUSTOMER’S SUBSCRIPTIONS WILL AUTOMATICALLY RENEW ON A MONTHLY OR ANNUAL BASIS AS APPLICABLE, AT THE THEN-CURRENT RATE
Unless otherwise specified in these Terms, fees paid are non-refundable and quantities purchased cannot be decreased during the relevant subscription term.
Figma reserves the right to change its fees at any time.
Customer can give notice of cancellation through Customer’s Figma account settings within the Services.
Recommendations
- Set a reminder before your renewal date, because cancellation only stops the next term, not the current one
- Audit your seat count before renewal since it renews at the seat quantity in your account on that date
- Watch AI credit and Pay-As-You-Go charges, they bill monthly and automatically
- If Figma announces a mid-term price change you dislike, object within 30 days to get a refund for the unused portion
Limitation of Liability
Risk allocation and legal protection
Figma excludes all indirect and consequential damages, including loss of data, and caps total liability at the greater of $100 or your last 12 months of fees. For free users that means a practical maximum of $100 no matter what goes wrong, the cap survives even if the limited remedy fails its essential purpose, and there is no carve-out for gross negligence or willful misconduct.
Key findings
- Total liability capped at the greater of $100 or 12 months of subscription fees
- All indirect, incidental, and consequential damages excluded, including loss of profits and data
- Cap applies under every legal theory, including negligence
- Limitations apply even if a limited remedy fails of its essential purpose
- All implied warranties are disclaimed, and third party resources carry no Figma responsibility at all
Evidence from the document
EXCEED, THE GREATER OF: (a) $100; OR (b) THE SUBSCRIPTION FEES PAID BY CUSTOMER TO FIGMA IN THE 12 MONTHS PRECEDING THE EVENT GIVING RISE TO SUCH LIABILITY.
BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES (INCLUDING LOSS OF PROFITS, DATA, OR USE OR COST OF COVER)
THE LIMITATIONS IN THIS SECTION 7 WILL APPLY TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY IN THIS AGREEMENT.
Recommendations
- Do not rely on Figma for compensation if lost files damage your business, keep your own backups
- Understand that on a free plan your maximum recovery is effectively $100
- Treat plugins and other third party resources as entirely at your own risk
Indemnification
Legal responsibility allocation
The indemnity runs only one way. You must cover Figma's losses and legal fees for any third party claim arising from your content or your violation of the terms, and Figma can choose to make you run the defense. Figma gives you no matching indemnity, not even the intellectual property infringement protection that is common in software agreements.
Key findings
- You indemnify Figma for claims arising from your content or your breach of the terms
- Coverage includes Figma's damages, losses, costs, and reasonable legal fees without a cap
- Figma can require you to defend the claim at its option
- No reciprocal indemnity from Figma to you anywhere in the document
Evidence from the document
Customer will indemnify, hold harmless, and, at Figma’s option, defend, Figma from any third party claims, disputes, demands, liabilities, damages, losses, and costs and expenses, including, without limitation, reasonable legal fees
Recommendations
- Only upload content you have the rights to, since claims about your content become your bill
- Businesses should consider liability insurance that covers contractual indemnities
- If you need IP infringement protection from Figma, that lives in the separate Enterprise agreement, not these terms
Modification of Terms
How agreements can be changed
Figma can change the terms and every referenced policy at any time, decides in its sole judgment what counts as a material change, and only promises to try to give advance notice. Continued use counts as acceptance, and your only real option if you disagree is to stop using the service. Figma can also change or discontinue features at any time without notice, though paid users get a migration or refund if the whole service is discontinued.
Key findings
- Terms and all referenced policies can be modified at any time
- Notice of material changes is only an endeavor, and materiality is decided in Figma's sole determination
- Continued use after changes means you accept them, with no other opt-out
- Features can be added, changed, or removed at any time without notice
- Paid subscribers get a similar replacement service or a pro rata refund if the service is discontinued
Evidence from the document
Figma may modify these Terms (and any policies or agreements referenced in these Terms) at any time.
By continuing to use the Services after any revised Terms become effective, Customer agrees to be bound by the new Terms.
Figma may, in its sole discretion, add, change, or remove features or functionality of the Services; modify or introduce limitations to storage or other features; or discontinue the Services altogether at any time without notice.
Recommendations
- Watch for emails or in-app notices from Figma about terms changes, silence plus continued use binds you
- Recheck the posted terms periodically since the current version on figma.com controls
- Remember that a new terms version restarts your 30 day arbitration opt-out window
Governing Law & Disputes
Jurisdiction and conflict resolution
By default you give up court, juries, and class actions. Disputes go to binding individual arbitration under California law, the arbitrator decides even whether the clause itself is enforceable, and the clause reaches back to disputes that arose before you accepted. Figma does better than most by offering a clearly explained 30 day written opt-out, plain-language explanations, and remote arbitration, but the class action waiver applies even if you opt out, and non-arbitrated claims must go to courts in San Francisco.
Key findings
- Mandatory binding arbitration on an individual basis with a jury trial waiver
- Class action waiver applies whether or not you opt out of arbitration
- 30 day written opt-out from arbitration is available and clearly explained
- The arbitration clause covers disputes that arose before the terms took effect
- 60 day pre-arbitration notice letter required before filing, and frivolous claims shift fees to the filer
- Any court claims must be brought in state or federal courts in San Francisco under California law
Evidence from the document
THESE TERMS WILL, WITH LIMITED EXCEPTION, REQUIRE CUSTOMER TO SUBMIT CLAIMS CUSTOMER HAS AGAINST FIGMA TO BINDING AND FINAL ARBITRATION SOLELY ON AN INDIVIDUAL BASIS
BY ENTERING INTO THESE TERMS, CUSTOMER AND FIGMA ARE EACH WAIVING THE RIGHT TO TRIAL BY JURY.
For purposes of Section 9.11, a Claim includes disputes arising before the effective date of these Terms.
Customer must opt-out within 30 days of the date you first agree to these Terms or any updated Terms.
Recommendations
- If you want to keep your right to sue in court, send the written opt-out to arbitration-opt-out@figma.com within 30 days of accepting
- Keep proof of the date you accepted the terms, the opt-out window runs from that date
- Send the required pre-arbitration letter and wait 60 days before filing any claim
- Budget for San Francisco as the venue for any non-arbitrated dispute
Ex-TerCo provides automated analysis of legal documents for informational purposes. This is not legal advice. Terms can change at any time.