This analysis describes what Character.AI'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 significantly narrows the scope of recoverable damages by categorically excluding entire classes of harm (consequential, indirect, and intangible losses) and establishing a fixed monetary ceiling for all claims. This structure limits the financial exposure Character.AI assumes for operational failures, unauthorized access, third-party conduct on the platform, or user-generated content issues.
Users' recoverable damages for any covered dispute are restricted to the greater of $100 or amounts paid to Character.AI, and cannot include consequential damages, lost profits, lost data, lost goodwill, or similar intangible losses regardless of the cause. This applies to claims arising from service unavailability, content interactions, data security incidents, or third-party conduct on the platform.
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Google's total liability to you for any claims under these terms, including for any implied warranties, is limited to the amount you paid us to use the Gemini API (or, if we choose, to supplying you the services again) in the 12 months before the breach.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DUOLINGO 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, RESUL...
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"You understand and agree that Character.AI will not be liable for any indirect, incidental, special, consequential, or exemplary damages, or damages for loss of profits including but not limited to damages for loss of goodwill, use, data or other intangible losses (even if Character.AI has been advised of the possibility of such damages), whether based on contract, tort, negligence, strict liability or otherwise, resulting from: (i) the use or the inability to use the Services; (ii) your access, use, creation of, or interaction with any content, Character or Generated Content; (iii) your sharing with any third party of any content, Character or Generated Content; (iv) unauthorized access to or alteration of your transmissions or data; (v) statements or conduct of any third party (including users) on the Services; or (vi) any other matter relating to the Services. In no event will Character.AI's total liability to you for all damages, losses or causes of action exceed the greater of: (i) $100; or (ii) the amount you paid Character.AI (if any) in connection with your use of the Services.— Excerpt from Character.AI's Character.ai Terms of Service
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The clause significantly narrows the scope of recoverable damages by categorically excluding entire classes of harm (consequential, indirect, and intangible losses) and establishing a fixed monetary ceiling for all claims. This structure limits the financial exposure Character.AI assumes for operational failures, unauthorized access, third-party conduct on the platform, or user-generated content issues.
Users' recoverable damages for any covered dispute are restricted to the greater of $100 or amounts paid to Character.AI, and cannot include consequential damages, lost profits, lost data, lost goodwill, or similar intangible losses regardless of the cause. This applies to claims arising from service unavailability, content interactions, data security incidents, or third-party conduct on the platform.
ConductAtlas has identified this type of provision across 5 platforms. See the full comparison.
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