AWS · AWS Customer Agreement · View original document ↗

Consequential Damages Exclusion

High severity High confidence Explicitdocumentlanguage Unique · 0 of 343 platforms
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Document Record

What it is

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

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.

Change history

added Jun 2, 2026

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 →

Consumer impact (what this means for users)

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.

How other platforms handle this

Mistral AI Medium

This Usage Policy does not apply to Mistral AI Products deployed on a customer's infrastructure, on the infrastructure of our partners, or to our open-source AI models and products.

Pinecone Medium

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...

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 ...

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▸ View Original Clause Language DOCUMENT RECORD
"
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

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(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.

Full compliance analysis

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Applicable agencies

  • FTC
    The FTC's oversight of unfair or deceptive commercial practices may be relevant where consequential damages exclusions are combined with other terms in a manner that leaves customers without meaningful recourse for service failures
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
AWS Customer Agreement
Entity
AWS
Document last updated
May 5, 2026
Tracking information
First tracked
May 21, 2026
Last verified
May 21, 2026
Record ID
CA-P-013184
Document ID
CA-D-00674
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
d47cdab1b87d6e2d7a3e281b188bf79b9a58fa27aa15d164d0db5f091f4e9d80
Analysis generated
May 21, 2026 05:59 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: AWS
Document: AWS Customer Agreement
Record ID: CA-P-013184
Captured: 2026-05-21 05:59:50 UTC
SHA-256: d47cdab1b87d6e2d…
URL: https://conductatlas.com/platform/aws/aws-customer-agreement/consequential-damages-exclusion/
Accessed: June 8, 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 AWS's Consequential Damages Exclusion clause do?

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 …

How does this clause affect you?

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.

Is ConductAtlas affiliated with AWS?

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