If AI21 Labs causes you harm, the maximum amount you can recover from them in a lawsuit is either what you paid them in the last year or $100 — whichever is larger.
Free-tier users and low-spending customers are effectively capped at $100 in recoverable damages regardless of the harm AI21's services cause them, removing meaningful financial recourse for service failures or data misuse.
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Compare across platforms →This cap means that even if AI21's service fails catastrophically — causing significant data loss, business disruption, or privacy harm — your legal recovery is capped at an amount that may be far below your actual damages.
(1) REGULATORY FRAMEWORK: Limitation of liability clauses are governed by state contract law (UCC, common law unconscionability doctrine). In the EU, Unfair Contract Terms Directive (93/13/EEC) and national consumer protection laws may render such caps unenforceable against consumers. GDPR Art. 82 provides data subjects an independent right to compensation for GDPR violations that cannot be contractually waived by the controller. FTC Act Section 5 may apply if the cap operates as part of a deceptive or unfair practice. (2)
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