Which regulatory agencies enforce this type of clause?

{'agency': 'FTC', 'reason': 'The FTC has authority under Section 5 to challenge unfair or deceptive contractual provisions, including liability caps that may be unconscionable or inadequately disclosed to consumers.', 'complaint_url': 'https://reportfraud.ftc.gov/'}, {'agency': 'State_AG', 'reason': 'State Attorneys General have authority under state UDAP statutes to challenge liability limitation clauses that are unconscionable or violate state consumer protection law.', 'complaint_url': 'https://www.naag.org/find-my-ag/'}

What is the severity of this clause?

ConductAtlas classifies this Liability Limitation — $500 Cap clause as high severity. Severity reflects the magnitude of rights affected, the breadth of users impacted, and the degree of discretion the platform retains.

Liability Limitation — $500 Cap — Google

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What it is

If Google causes you harm, the most you can recover from them in a lawsuit is limited to what you paid Google in the last three months — which for free services is $0, with a stated floor of $500 USD.

Change history

modified Apr 18, 2026

Changed from 'relevant services' to 'services'; added explicit exclusion of lost profits and revenue; removed 'not reasonably foreseeable' standard in favor of broader exclusions.

View full change record →

Consumer impact (what this means for users)

For users of free Google services, this liability cap effectively limits any legal recovery to $500, even if account termination or data loss causes substantial financial or personal harm.

Cross-platform context

See how other platforms handle Liability Limitation — $500 Cap and similar clauses.

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Why it matters (compliance & risk perspective)

This cap means that even if Google loses your data, exposes it, or wrongly terminates your account causing significant harm, your legal compensation is severely limited regardless of actual damages.

View original clause language

To the extent permitted by law, the total liability of Google, and its suppliers and distributors, for any claims under these terms, including for any implied warranties, is limited to the amount you paid us to use the services (or, if we choose, to supplying you the services again) in the three months before the dispute arises (or, if we choose, to supplying you the services again). To the extent permitted by law, Google, its suppliers and distributors are not responsible for lost profits, revenues, or data, financial losses or indirect, special, consequential, exemplary, or punitive damages.

Institutional analysis (Compliance & legal intelligence)

REGULATORY FRAMEWORK: This provision implicates EU Unfair Contract Terms Directive (93/13/EEC) and national implementations (e.g., UK Consumer Rights Act 2015, ss. 62-65), which may render such liability caps unenforceable against consumers in EU and UK jurisdictions. It also engages the Australian Consumer Law (ACL) and similar consumer protection statutes in other common law jurisdictions that prohibit exclusion of statutory guarantees. In the US, state consumer protection laws (UDAP statutes) in some jurisdictions limit contractual liability waivers.

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Applicable agencies

FTC

The FTC has authority under Section 5 to challenge unfair or deceptive contractual provisions, including liability caps that may be unconscionable or inadequately disclosed to consumers.
File a complaint →
State AG

State Attorneys General have authority under state UDAP statutes to challenge liability limitation clauses that are unconscionable or violate state consumer protection law.
File a complaint →

Provision details

Document information

Document

Google Terms of Service

Entity

Google

Document last updated

March 24, 2026

Tracking information

First tracked

April 18, 2026

Last verified

April 18, 2026

Record ID

CA-P-002690

Document ID

CA-D-00014

Evidence Provenance

Source URL

https://policies.google.com/terms

Wayback Machine

View archived versions →

SHA-256

81bad7a48cbda269ec755a2db3e7859d4e495415ccae4e0ab45d0bc0d060e7fb

Verified

✓ Snapshot stored ✓ Change verified

How to Cite

ConductAtlas Policy Archive
Entity: Google | Document: Google Terms of Service | Record: CA-P-002690
Captured: 2026-04-18 08:20:09 UTC | SHA-256: 81bad7a48cbda269…
URL: https://conductatlas.com/platform/google/google-terms-of-service/liability-limitation-500-cap/
Accessed: April 29, 2026

Classification

Severity

High

Liability Limitation — $500 Cap