Acorns · Acorns Terms of Service · View original document ↗

Limitation of Liability

High severity Medium confidence Explicitdocumentlanguage Common · 265 of 343 platforms
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Document Record

What it is

The agreement caps Acorns' total liability to any user at the amount the user paid in subscription fees during the 12 months before the claim arose, with a minimum floor of $25 for users who paid nothing. This cap applies to all claims arising from the terms or services.

This analysis describes what Acorns'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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This provision establishes that the maximum financial recovery available to a user for any claim against Acorns is limited to 12 months of subscription fees paid, which at Acorns' current pricing tiers represents a low absolute dollar amount relative to potential investment losses or banking service failures. Applicable law, including potential fiduciary duty obligations under securities regulations, may constrain the enforceability of this cap in certain claim contexts.

Interpretive note: The enforceability of the liability cap for investment advisory and broker-dealer claims may be constrained by the Investment Advisers Act's anti-waiver provisions and applicable FINRA rules; enforceability depends on jurisdiction and claim type.

Change history

added May 28, 2026

New high-severity cap on Acorns' liability exposure limits user recovery to payments made or a nominal $25, significantly restricting remedies for service failures.

View full change record →
modified May 12, 2026

Removed detailed limitation of liability language including the 12-month fee cap, replacing it with generic acknowledgment language that obscures the actual liability limitations.

View full change record →

Consumer impact (what this means for users)

Under this clause, a user's maximum monetary recovery from Acorns for any claim, including investment account management failures or banking service disruptions, is capped at the subscription fees paid in the preceding 12 months. At Acorns' subscription pricing tiers, this cap represents a materially low recovery ceiling relative to potential investment account balances.

How other platforms handle this

ConvertKit Medium

To the maximum extent permitted by applicable law, Kit shall not be liable for any indirect, incidental, special, consequential or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, resulting ...

Pinterest Medium

To the maximum extent permitted by applicable law, Pinterest shall not be liable for any indirect, incidental, special, consequential, or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, res...

Hulu Medium

You will remain responsible for any amounts you fail to pay in connection with your subscription, including collection costs, bank overdraft fees, collection agency fees, reasonable attorneys' fees, and arbitration or court costs.

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▸ View Original Clause Language DOCUMENT RECORD
"
IN NO EVENT WILL ACORNS' AGGREGATE LIABILITY ARISING OUT OF OR IN CONNECTION WITH THESE TERMS OR THE SERVICES EXCEED THE AMOUNTS YOU HAVE PAID TO ACORNS FOR THE SERVICES IN THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM, OR, IF YOU HAVE NOT PAID ACORNS FOR USE OF ANY SERVICES, THE AMOUNT OF TWENTY-FIVE DOLLARS ($25).

— Excerpt from Acorns's Acorns Terms of Service

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(1) REGULATORY LANDSCAPE: The limitation of liability provision may engage SEC and FINRA rules governing the enforceability of liability caps in investment adviser and broker-dealer agreements, where applicable suitability and fiduciary obligations may limit the extent to which contractual damages caps can override regulatory duties. The Investment Advisers Act's anti-waiver provisions prohibit investment advisers from contractually limiting liability for their own negligence in certain circumstances. State securities laws may impose additional constraints. (2) GOVERNANCE EXPOSURE: High. The 12-month fee cap creates a significant disparity between the potential magnitude of user losses on investment accounts and the maximum contractual recovery, which may interact with applicable regulatory standards for investment advisers and broker-dealers. The enforceability of this cap for claims arising from investment management services specifically warrants legal assessment under the Investment Advisers Act's anti-waiver provisions. (3) JURISDICTION FLAGS: California, New York, and other states with consumer financial protection statutes may limit the enforceability of liability caps in investment adviser agreements. The $25 floor for non-paying users may be subject to challenge as unconscionable in jurisdictions with robust consumer protection frameworks. (4) CONTRACT AND VENDOR IMPLICATIONS: The cap does not appear to distinguish between general consumer claims and claims arising from investment management or broker-dealer services, which may create inconsistency with regulatory obligations that cannot be contractually limited. Procurement and legal teams reviewing this agreement in a B2B context should note that the cap applies to the defined 'Services' broadly. (5) COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the liability cap is enforceable as applied to investment advisory claims under the Investment Advisers Act's anti-waiver provisions, particularly for claims arising from alleged breaches of fiduciary duty. Compliance teams should also evaluate whether the cap interacts with FINRA's customer protection rules in ways that affect its enforceability for securities-related claims.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • SEC
    The SEC has authority over registered investment advisers and broker-dealers, including oversight of contractual provisions that may limit liability for investment management services
    File a complaint →
  • CFPB
    The CFPB has authority over liability limitation provisions in consumer financial services contracts covering banking products
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Acorns Terms of Service
Entity
Acorns
Document last updated
May 5, 2026
Tracking information
First tracked
May 20, 2026
Last verified
May 20, 2026
Record ID
CA-P-010142
Document ID
CA-D-00171
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
f7196be6e219d3296a1cb4fb309a52e96e9747f1b439f96d4ae682b9c8866308
Analysis generated
May 20, 2026 22:16 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Acorns
Document: Acorns Terms of Service
Record ID: CA-P-010142
Captured: 2026-05-20 22:16:44 UTC
SHA-256: f7196be6e219d329…
URL: https://conductatlas.com/platform/acorns/acorns-terms-of-service/limitation-of-liability/
Accessed: July 4, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Acorns's Limitation of Liability clause do?

This provision establishes that the maximum financial recovery available to a user for any claim against Acorns is limited to 12 months of subscription fees paid, which at Acorns' current pricing tiers represents a low absolute dollar amount relative to potential investment losses or banking service failures. Applicable law, including potential fiduciary duty obligations under securities regulations, may constrain the …

How does this clause affect you?

Under this clause, a user's maximum monetary recovery from Acorns for any claim, including investment account management failures or banking service disruptions, is capped at the subscription fees paid in the preceding 12 months. At Acorns' subscription pricing tiers, this cap represents a materially low recovery ceiling relative to potential investment account balances.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 265 platforms. See the full comparison.

Is ConductAtlas affiliated with Acorns?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Acorns.