If Character.AI causes you harm, including through data breaches or harmful AI-generated content, you can only recover a maximum of $100 or what you paid them, whichever is more, and cannot recover for emotional distress, data loss, or other indirect harms.
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
This cap means that even if Character.AI's platform causes significant real-world harm, such as through a data breach, harmful AI outputs, or unauthorized content use, the company's financial exposure to any individual user is capped at $100, which significantly limits practical legal recourse.
Interpretive note: Enforceability of the $100 cap varies by jurisdiction; EU/EEA law and certain U.S. state consumer protection statutes may limit the cap's applicability in cases of gross negligence or fundamental contractual breaches.
Previous version had empty excerpt; current version now provides detailed liability limitation language with damages exclusions.
View full change record →Regardless of the severity of harm you experience through using the platform, including unauthorized access to your data or harmful AI-generated content, the maximum you can recover from Character.AI under these terms is $100 or what you paid them, which is a significant practical limitation on your legal remedies.
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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 Terms of Service
REGULATORY LANDSCAPE: Liability caps of this nature are standard in technology sector consumer contracts but may face enforceability challenges under consumer protection law in specific jurisdictions.
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This cap means that even if Character.AI's platform causes significant real-world harm, such as through a data breach, harmful AI outputs, or unauthorized content use, the company's financial exposure to any individual user is capped at $100, which significantly limits practical legal recourse.
Regardless of the severity of harm you experience through using the platform, including unauthorized access to your data or harmful AI-generated content, the maximum you can recover from Character.AI under these terms is $100 or what you paid them, which is a significant practical limitation on your legal remedies.
ConductAtlas has identified this type of provision across 287 platforms. See the full comparison.
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