If Cohere causes you harm — including through errors in their AI outputs or data breaches — the most money you can recover from them in a lawsuit is $100, or what you paid them in the last year, whichever is more.
This provision limits Cohere's total financial liability to you to just $100 regardless of how serious the harm is, which means consumers and businesses have almost no meaningful financial recourse if Cohere's AI services cause damage.
Cross-platform context
See how other platforms handle Limitation of Liability — $100 Cap and similar clauses.
Compare across platforms →This cap means that even in cases of serious harm — such as a data breach exposing your customers' information or faulty AI outputs causing business loss — Cohere's financial exposure to you is almost nothing, leaving you to bear the full cost.
(1) REGULATORY FRAMEWORK: Limitation of liability clauses are governed by UCC Article 2 and common law unconscionability doctrines in US jurisdictions. In the EU, such caps may be unenforceable under GDPR Art. 82 (which provides data subjects a right to compensation for damage caused by GDPR violations that cannot be contractually waived) and the EU AI Act which may impose mandatory liability provisions for high-risk AI systems. The FTC may scrutinize such clauses under Section 5 if they are applied to consumer-facing products in a way that is deceptive or unfair. (2)
Compliance intelligence locked
Regulatory citations, enforcement risk, and due diligence action items.
Watcher: regulatory citations. Professional: full compliance memo.