Character.AI · Character.ai Terms of Service · View original document ↗

$100 Liability Cap

High severity Rare · 1 of 325 platforms
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Document Record

What it is

If Character.AI causes you harm, the most money you can recover from them is $100 or what you paid them — whichever is greater.

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

The clause defines the maximum financial exposure Character.AI assumes under the agreement, establishing a ceiling on recoverable damages regardless of the nature or magnitude of claimed losses. This limitation applies across all liability categories and dispute types covered by the terms.

Consumer impact (what this means for users)

Users effectively have no financial recourse against Character.AI for most damages, including data breaches, psychological harm from AI outputs, or service failures. This cap may not apply in the EEA where liability for gross negligence and cardinal contractual breaches is preserved.

How other platforms handle this

Duolingo Medium

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...

Perplexity AI Medium

TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL PERPLEXITY, ITS AFFILIATES, LICENSORS, SERVICE PROVIDERS, EMPLOYEES, AGENTS, OFFICERS, OR DIRECTORS BE LIABLE FOR ANY INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS O...

Craigslist Medium

To the full extent permitted by law, craigslist, Inc., and its officers, directors, employees, agents, licensors, affiliates, and successors in interest ("CL Entities") (1) make no promises, warranties, or representations as to CL, including its completeness, accuracy, availability, timeliness, prop...

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▸ View Original Clause Language DOCUMENT RECORD
"
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

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

The $100 aggregate liability cap excludes indirect, incidental, consequential, and exemplary damages. The document includes an EEA carve-out preserving liability for cardinal contractual obligations and gross negligence, reflecting GDPR and EU consumer law compliance awareness. US-based enforcement exposure remains limited but reputational risk from harm incidents is elevated.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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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 →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Character.ai Terms of Service
Entity
Character.AI
Document last updated
May 5, 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
Content hash (SHA-256)
afc2a19191ff929e64b410b7b3894bb94bc2a63503003278bdde52672ee127ac
Analysis generated
March 15, 2026 11:15 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Character.AI
Document: Character.ai Terms of Service
Record ID: 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: May 20, 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 Character.AI's $100 Liability Cap clause do?

The clause defines the maximum financial exposure Character.AI assumes under the agreement, establishing a ceiling on recoverable damages regardless of the nature or magnitude of claimed losses. This limitation applies across all liability categories and dispute types covered by the terms.

How does this clause affect you?

Users effectively have no financial recourse against Character.AI for most damages, including data breaches, psychological harm from AI outputs, or service failures. This cap may not apply in the EEA where liability for gross negligence and cardinal contractual breaches is preserved.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 1 platforms. See the full comparison.

Is ConductAtlas affiliated with Character.AI?

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