Broad User Indemnification

What it is

You agree to cover Character.AI's legal costs and any losses the company suffers, including attorneys' fees and injury claims, that arise from your use of the platform, with almost no limitation stated on this obligation.

Why it matters (compliance & governance perspective)

This indemnification clause establishes that users assume financial and legal liability for claims or damages that arise from their own use of the platform, shifting certain defense and damage costs to the user rather than the company bearing those expenses.

Consumer impact (what this means for users)

If a third party sues Character.AI over something related to your use of the platform, including content you submitted or interactions you had, you may be required to pay Character.AI's legal defense costs and any resulting damages, which creates significant financial exposure for ordinary users.

Institutional analysis (Compliance & governance intelligence)

REGULATORY LANDSCAPE: Broad indemnification clauses in consumer contracts are subject to scrutiny under consumer protection law in multiple jurisdictions. EU/EEA consumer law generally limits the enforceability of indemnification obligations that would expose consumers to disproportionate liability. California courts have found overly broad indemnification clauses in consumer contracts potentially unconscionable, particularly where the clause imposes liability without a fault threshold. The FTC Act's unfairness doctrine may be relevant where a clause creates an unreasonable risk of financial harm to consumers. GOVERNANCE EXPOSURE: High. The indemnification language as drafted covers all losses, damages, and expenses of any kind arising out of or relating to use of the Services, without expressly limiting the obligation to situations where the user is at fault or acted in violation of the terms. The inclusion of attorneys' fees and injury including death creates potentially significant financial exposure for individual consumers. The California Civil Code Section 1542 waiver accompanying the indemnification further extends user exposure by waiving unknown claims. JURISDICTION FLAGS: EU/EEA: indemnification obligations of this scope in consumer contracts are generally not enforceable against individual consumers under EU unfair contract terms directives. California: the explicit waiver of California Civil Code Section 1542 (unknown claims waiver) is notable and may face scrutiny as an extension of consumer liability; courts have sometimes found such waivers unenforceable in consumer adhesion contracts. UK: similar constraints apply under the Unfair Contract Terms Act and Consumer Rights Act. CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should assess whether the indemnification clause applies to business accounts and whether it creates meaningful exposure for organizational users whose employees use the platform. The absence of a reciprocal indemnification obligation from Character.AI toward users is a notable asymmetry that should be flagged in vendor assessments. COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the indemnification clause, combined with the liability cap and arbitration waiver, creates a structure that may be challenged as unconscionable in applicable jurisdictions. Consumer-facing disclosure of the indemnification obligation should be reviewed for adequacy. Risk management teams should consider whether personal liability insurance or organizational policies address platform indemnification obligations.

Applicable agencies

Applicable regulations

Provision details

Other risks in this policy

• Perpetual Irrevocable Content License high
• AI-Generated Content License high
• Mandatory Arbitration and Class Action Waiver high
• Limitation of Liability and $100 Cap high
• Age Restrictions (13/16 Minimum) high
• Subscription Non-Refund Policy medium