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.
This analysis describes what AI21 Labs'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
The clause operates as a contractual limitation on exposure for the service provider, establishing predetermined maximum financial responsibility regardless of claim type or magnitude. This structures the risk allocation between the parties by defining the upper bound of recoverable damages in disputes.
The updated terms remove the explicit "Your Opt-Out Rights" button that previously allowed users to opt out of data sales and targeted advertising. In its place, the revised language establishes a general cookie consent framework requiring users to click "Accept" to allow cookies for site navigation, usage analysis, and marketing efforts. Users retain the ability to choose not to allow certain cookie types, but the prior dedicated opt-out mechanism for data sales and targeted advertising is no longer explicitly described in the accessible terms interface. If you wish to control cookie preferences, you can click on the cookie settings to modify consent for different types of cookies; however, strictly necessary cookies cannot be declined as they are required for core website functionality.
View change record →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.
How other platforms handle this
If you knowingly misrepresent that any activity or material on our Services is infringing, you may be liable to ActiveCampaign for certain costs and damages.
A party's liability for any Liability under these Terms will be reduced proportionately to the extent the relevant Liability was caused or contributed to by the actions (or inactions) of the other party...
The Netflix service and/or some of the Netflix content may not be available at any time as a result of events beyond our reasonable control...we will not be held liable should such events occur.
"TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AI21'S TOTAL CUMULATIVE LIABILITY TO YOU FOR ANY CLAIMS ARISING OUT OF OR RELATED TO THESE TERMS OR THE SERVICES, WHETHER IN CONTRACT, TORT, OR OTHERWISE, SHALL NOT EXCEED THE GREATER OF (A) THE AMOUNTS PAID BY YOU TO AI21 IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM, OR (B) ONE HUNDRED U.S. DOLLARS ($100).Excerpt from AI21 Labs's Terms of Use
(1) REGULATORY FRAMEWORK: Limitation of liability clauses are governed by state contract law (UCC, common law unconscionability doctrine).
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The clause operates as a contractual limitation on exposure for the service provider, establishing predetermined maximum financial responsibility regardless of claim type or magnitude. This structures the risk allocation between the parties by defining the upper bound of recoverable damages in disputes.
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.
ConductAtlas has identified this type of provision across 287 platforms. See the full comparison.
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