The agreement excludes liability for indirect, incidental, special, consequential, or exemplary damages for both parties, explicitly including lost profits, lost revenues, lost customers, lost opportunities, lost goodwill, and data loss, even where the party was aware of the potential for such damages.
This analysis describes what AWS'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
This provision, combined with the aggregate liability cap, means that data loss, service downtime-related revenue loss, customer churn attributable to AWS service failures, and reputational harm are categories of loss for which neither party may seek recovery under the agreement. The exclusion applies symmetrically but is operationally more significant for customers, as AWS service failures are more likely to cause consequential losses to customers than vice versa.
This standalone provision clarifies and strengthens the exclusion of consequential damages with explicit enumeration of damage types, making the liability limitation more specific and enforceable.
View full change record →This clause establishes that lost data, lost revenue, and lost customers are not recoverable damages under the agreement even if directly caused by an AWS service failure, and even if AWS was aware of the potential for such losses. This applies regardless of the legal theory asserted.
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TO THE MAXIMUM EXTENT PERMITTED BY LAW, NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, OUR LIABILITY TO YOU FOR ANY DAMAGES ARISING FROM OR RELATED TO THESE TERMS (FOR ANY CAUSE WHATSOEVER AND REGARDLESS OF THE FORM OF THE ACTION), WILL AT ALL TIMES BE LIMITED TO A MAXIMUM OF FIFTY US DO...
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 ...
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"IN NO EVENT WILL EITHER PARTY OR THEIR AFFILIATES BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING DAMAGES FOR LOST PROFITS, REVENUES, CUSTOMERS, OPPORTUNITIES, GOODWILL, OR DATA, EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.— Excerpt from AWS's AWS Customer Agreement
(1) REGULATORY LANDSCAPE: Mutual consequential damages exclusions are standard in US commercial cloud agreements and are generally enforceable under US law, though enforceability may be limited in cases of gross negligence, willful misconduct, or fraud depending on jurisdiction. Under GDPR, data subjects retain independent rights to compensation for damages from data protection violations that are not constrained by the customer-AWS contractual exclusion. In some EU member states, blanket exclusion of liability for data loss in commercial agreements may face enforceability limits. (2) GOVERNANCE EXPOSURE: High. The explicit exclusion of data loss as a recoverable category is operationally significant for customers whose AWS-hosted data has significant intrinsic or regulatory value. The exclusion of lost profits and lost customers means that business interruption losses attributable to AWS outages are contractually non-recoverable regardless of their scale. (3) JURISDICTION FLAGS: EU/EEA and UK commercial law in certain member states may constrain the enforceability of liability exclusions for data loss in B2B agreements. California courts have applied various doctrines to consequential damages exclusions; applicability depends on specific facts and the applicable contracting entity. Financial services and healthcare customers may face regulatory obligations that require them to maintain data access and integrity in ways that the contractual exclusion does not address. (4) CONTRACT AND VENDOR IMPLICATIONS: Vendor risk management teams should treat the combined effect of the liability cap and consequential damages exclusion as establishing a practical ceiling on contractual recovery that is disconnected from actual business impact. This creates a case for cyber insurance, redundant architecture, and data backup strategies independent of AWS's contractual obligations. Customers should assess whether negotiated enterprise agreements with AWS include any modifications to the consequential damages exclusion. (5) COMPLIANCE CONSIDERATIONS: Legal teams should document this exclusion in vendor risk assessments and ensure it is reflected in enterprise risk registers. Organizations operating in regulated industries should evaluate whether the exclusion is consistent with regulatory expectations for vendor contract terms related to data protection and service continuity.
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This provision, combined with the aggregate liability cap, means that data loss, service downtime-related revenue loss, customer churn attributable to AWS service failures, and reputational harm are categories of loss for which neither party may seek recovery under the agreement. The exclusion applies symmetrically but is operationally more significant for customers, as AWS service failures are more likely to cause …
This clause establishes that lost data, lost revenue, and lost customers are not recoverable damages under the agreement even if directly caused by an AWS service failure, and even if AWS was aware of the potential for such losses. This applies regardless of the legal theory asserted.
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