Perplexity AI modified one sentence in their API Terms of Service on May 27, 2026, changing a cross-reference from Section 8 to Section 9 in the liability limitations clause. The change corrects which section governs indemnification obligations that are excluded from the liability cap. This appears to be a technical correction to internal document structure rather than a substantive change to consumer rights or obligations.
This change is a technical correction to an internal cross-reference in the liability limitations clause and does not alter the substantive rights, obligations, or protections available to API users. The underlying liability limitation remains unchanged.
The updated terms correct an internal section reference in the liability limitations clause, ensuring that the indemnification carve-out correctly references the applicable section. This technical correction does not alter the scope of liability limitations or developer obligations.
Section reference corrected from Section 8 to Section 9; substantive indemnification carve-out unchanged.
This change record describes what was added, removed, or modified in the document. Analysis reflects what the updated agreement states or permits. It does not constitute a legal determination about enforceability. Applicability may vary by jurisdiction. Methodology
The change corrects a section reference in the indemnification carve-out from Perplexity's liability cap, changing from Section 8 to Section 9. This is a technical correction that does not alter substantive liability terms. No regulatory exposure or compliance action is indicated by this change.
Full compliance analysis
Obligation analysis, escalation trigger, board language, and recommended action.
Monitor: regulatory citations + obligations. Compliance: full compliance memo.
ConductAtlas provides verified policy intelligence sourced directly from platform documents. All analysis is intended to support, not replace, legal and compliance review. Record CA-C-002382.
Establishes exclusive jurisdiction in California courts and California law governance, potentially favoring Perplexity and limiting developers' ability to litigate in their home jurisdictions.
Removal eliminates developer liability for downstream end-user violations, substantially reducing developer risk exposure.
Removal of unilateral modification rights language suggests either removal of this power or relocation to another section, materially affecting Perplexity's flexibility to update terms unilaterally.
Scope expanded from 'analyze' to 'distribute' outputs, and purposes broadened from 'maintaining and improving the Service' to 'developing the Services,' giving Perplexity broader rights to redistribute user-generated content.
Liability cap calculation changed from 'greater of $100 or 3-month fees' to 12-month fees only, removing the minimum $100 floor and significantly increasing Perplexity's potential exposure for larger customers.
Removed the mandatory data destruction obligation upon termination, reducing post-termination compliance burden on developers.
Added 'affiliates' to protected parties and changed 'infringement of any intellectual property or other rights of any person or entity' to narrower 'violation of any third-party rights,' reducing indemnification scope slightly.
Removed competitive use restriction and high-risk application safeguard requirement, but added explicit prohibitions on deceptive practices, misinformation, and infrastructure abuse, shifting focus from competitive harm to content quality and infrastructure protection.
Removed explicit statement that 'all outputs generated by the Service' belong to Perplexity and eliminated the description of developer's limited license grant, making ownership claim more absolute but less specific about outputs.
Cross-platform context
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See the full side-by-side comparison of every sentence added, removed, and modified.
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