Patreon, OnlyFans, Substack | Account Suspensions, Payment Holds & Content Removal
| Platform | Business Model | Platform Fee | Payment Processing | Common Issues |
|---|---|---|---|---|
| Patreon | Membership subscriptions (monthly tiers) | 5-12% + payment processing (~2.9% + $0.30) | Stripe, PayPal | Account suspensions for vague ToS violations; payment holds; content restrictions |
| OnlyFans | Subscriptions + tips + PPV content | 20% of earnings | Third-party payment processors | Sudden account bans; chargebacks; payment processor pressure on adult content |
| Substack | Newsletter subscriptions | 10% of paid subscriptions | Stripe | Content moderation disputes; payment delays; limited support |
| Ko-fi | Tips + memberships | 0% (free tier) or 5% (premium) | PayPal, Stripe | Payment holds from processor issues |
| Buy Me a Coffee | One-time tips + memberships | 5% platform fee | Stripe | Account verification delays; payment holds |
| Gumroad | Digital product sales + memberships | 10% + payment processing | Stripe, PayPal | Account suspensions; withheld funds; content disputes |
What platforms CAN do (per ToS):
What platforms CANNOT do (despite ToS):
The payment processor problem:
Common payment processor restrictions:
Typical ToS provisions (what you agreed to):
| ToS Provision | What It Means | Creator Impact |
|---|---|---|
| At-will termination | Platform can terminate your account anytime for any reason | Limited recourse; must prove breach of good faith or discrimination |
| Content ownership | You own content; platform gets broad license to display/distribute | You retain copyright but platform can use your content per license |
| Payment terms | Payouts processed monthly; platform may hold funds for chargebacks/disputes | Cash flow delays; funds may be held 30-90 days after earnings |
| Fee changes | Platform may change fees with notice (usually 30 days) | Revenue may decrease if fees increase |
| Indemnification | You indemnify platform for claims arising from your content | You're liable if subscriber sues platform over your content |
| Arbitration clause | Disputes resolved via arbitration, not court (often waives class actions) | Can't sue in court; must arbitrate; can't join class action |
| Limitation of liability | Platform's liability capped (often at fees paid in past 12 months) | Even if platform breaches, damages limited |
Who owns your subscriber list?
Scenario: Platform suspends or terminates creator's account, often with vague explanation or no warning
Common reasons (stated by platforms):
Creator's challenges:
Potential legal claims:
Scenario: Platform holds creator's earned revenue, sometimes for months, citing "investigation" or "risk review"
Common triggers:
Legal issues:
Scenario: Platform removes specific posts/content, sometimes retroactively
Examples:
Creator impact:
Legal claims:
Scenario: Platform increases fees, reducing creator's take-home revenue
Example: Patreon announces increase in platform fee from 5% to 12% (or changes payout structure increasing effective fees)
Creator's options:
Legal issues:
Scenario: Subscribers dispute charges with credit card company; creator loses money + faces chargeback fees
How chargebacks hurt creators:
Common chargeback scenarios:
Creator's remedies:
Scenario: Platform goes bankrupt or shuts down; creators lose access to subscribers and funds
Recent examples:
Creator risks:
Legal options (limited):
Why platforms hold payments:
| Hold Reason | Typical Duration | Resolution |
|---|---|---|
| Risk review (rapid growth) | 7-30 days | Provide ID verification, business documentation, explanation of growth |
| Chargeback investigation | 30-90 days | Dispute chargebacks with evidence; wait for chargeback window to close |
| Content review | 14-60 days | Remove flagged content or prove compliance with ToS |
| Payment processor hold | 30-180 days | Resolve with processor (Stripe, PayPal); platform can't release until processor does |
| Account closure reserve | 90-180 days | Wait for chargeback window to expire; platform releases remaining balance |
| Fraud investigation | Indefinite (until resolved) | Prove account legitimate; provide documentation; may never release if fraud confirmed |
When payment holds may be unlawful:
State wage law application:
California example (SB 1402 - "Freelance Worker Protection Act" proposed):
Step 1: Gather documentation
Step 2: Formal demand letter
Step 3: Escalation
Risk mitigation strategies:
What Section 230 protects:
What Section 230 does NOT protect:
Most platform ToS require arbitration:
Typical arbitration provision:
Challenging arbitration clauses:
Using arbitration strategically:
Unfair and Deceptive Acts and Practices (UDAP) laws:
Every state has consumer protection statute prohibiting unfair or deceptive business practices. These laws can apply to platforms:
| State | Statute | Key Features |
|---|---|---|
| California | Unfair Competition Law (Bus. & Prof. Code § 17200) | Prohibits unlawful, unfair, or fraudulent business practices; no need to prove intent; allows injunctive relief and restitution |
| New York | General Business Law § 349 | Prohibits deceptive consumer practices; allows damages + attorney fees |
| Massachusetts | Chapter 93A | Prohibits unfair/deceptive practices; allows double or treble damages + attorney fees |
| Texas | Deceptive Trade Practices Act (DTPA) | Protects consumers from false or misleading practices; allows treble damages |
UDAP claims against platforms:
Joining class action lawsuits:
If platform has wronged many creators similarly, class action may be filed:
Arbitration class waiver problem:
Government agencies that regulate platforms:
| Agency | Jurisdiction | How to Complain |
|---|---|---|
| State Attorney General | Consumer protection, unfair business practices | File complaint via state AG website consumer complaint form |
| Consumer Financial Protection Bureau (CFPB) | Payment processing, financial services | Submit complaint at consumerfinance.gov/complaint |
| Federal Trade Commission (FTC) | Deceptive practices, unfair competition | Report at reportfraud.ftc.gov |
| State Banking Regulator | Payment processors (if state-chartered) | File complaint with state banking department |
| Card Networks (Visa/Mastercard) | Payment processor compliance with network rules | Report to card network's merchant compliance department |
Impact of regulatory complaints:
I represent creators in disputes with subscription platforms (Patreon, OnlyFans, Substack, etc.). Services include: account reinstatement demands, payment release, arbitration filing, UDAP claims, and litigation for breach of contract and conversion.
Book a call to discuss your platform dispute. Whether your account was suspended, payments are being withheld, or content was wrongfully removed, I'll assess your options and recommend strategy.
Email: owner@terms.law
Content creators on subscription platforms like OnlyFans, Patreon, Fansly, and Ko-fi face unique legal challenges when platforms ban their accounts, withhold earnings, or terminate access without clear explanation. Unlike traditional employment or contractor relationships, platform Terms of Service often give platforms broad discretion to suspend or terminate accounts. Creators can lose months of accumulated earnings, subscriber relationships, and income streams overnight. Understanding your legal rights and how to challenge platform actions is critical for protecting your creator business.
While platform Terms of Service heavily favor the platform, creators still have legal options. First, review the ToS carefully for specific procedural requirements the platform may have violated. Second, demand an itemized explanation of the alleged violation and opportunity to cure or appeal. Third, if earnings are being withheld, argue that the platform has no right to retain money already earned for services already performed—even if account access is terminated. Fourth, review state money transmission and unclaimed property laws that may require platforms to release funds within certain timeframes. Finally, consider whether the termination was pretextual or discriminatory, which could support claims beyond simple breach of contract.
A well-drafted demand letter to a subscription platform should cite specific Terms of Service provisions, document the timeline of events (content posted, termination notice, withheld amounts), and demand concrete relief: reinstatement, payout of accumulated earnings, and/or data export rights. Include a clear deadline (10-14 days) and state you will pursue arbitration or litigation if the platform fails to respond. While platforms have significant leverage, legal demand letters often escalate your case to teams with authority to make exceptions—particularly when amounts are substantial or the termination rationale is weak. Always preserve evidence: screenshot your content, document earnings history, save all platform communications.