Character.AI · Character.AI Terms of Service

$100 Liability Cap

High severity
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Why it matters

This provision severely limits what you can recover even if the company is at fault, potentially leaving you without meaningful compensation for serious harms.

Consumer impact

Character.AI claims a perpetual, irrevocable, royalty-free license to use everything you submit or generate on the platform — including your conversations — for commercial and promotional purposes. If anything goes wrong, the company's liability to you is capped at just $100 or whatever you paid them. You can opt out of the mandatory arbitration clause by emailing legal@character.ai within 30 days of agreeing to the Terms.

Applicable agencies

  • FTC
    Liability caps that effectively immunize companies from consumer harm may constitute unfair or deceptive trade practices under FTC Act Section 5.
    File a complaint →
  • State AG
    State attorneys general can challenge liability limitation clauses that violate state consumer protection statutes.
    File a complaint →

Provision details

Document information
Document
Character.AI Terms of Service
Entity
Character.AI
Document last updated
March 24, 2026
Tracking information
First tracked
March 15, 2026
Last verified
March 15, 2026
Record ID
CA-P-000796
Document ID
CA-D-00121
Evidence Provenance
Source URL
Wayback Machine
SHA-256
afc2a19191ff929e64b410b7b3894bb94bc2a63503003278bdde52672ee127ac
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: Character.AI | Document: Character.AI Terms of Service | Record: CA-P-000796
Captured: 2026-03-15 11:15:55 UTC | SHA-256: afc2a19191ff929e…
URL: https://conductatlas.com/platform/characterai/characterai-terms-of-service/100-liability-cap/
Accessed: April 4, 2026
Classification
Severity
High
Categories

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