Grammarly's Terms of Service is the legal agreement that controls how you can use Grammarly's grammar-checking, writing assistance, and AI tools, including what Grammarly can do with the text you type into its products. The most important thing to know is that by using Grammarly, you grant the company a broad license to use your written content — including documents and messages — to improve and train its AI systems. If you want to avoid mandatory arbitration instead of court proceedings, you must opt out in writing within 30 days of first agreeing to the terms.
Grammarly's Terms of Service governs the contractual relationship between Grammarly Inc. and users of its writing assistance platform, operating under a clickwrap acceptance model whereby continued use constitutes agreement. The document imposes significant obligations on users including granting Grammarly a broad, royalty-free license to use submitted content for service improvement and AI training purposes, while Grammarly disclaims nearly all warranties and caps its liability at amounts paid in the preceding twelve months or $20, whichever is greater. Notably, the terms include a mandatory binding arbitration clause with a class action waiver, a 30-day opt-out window from arbitration, and a unilateral right to modify the terms with notice — provisions that materially restrict users' legal recourse and create asymmetric contractual power. The document engages GDPR (for EU users via separate Privacy Policy incorporation), CCPA (California residents), COPPA (minimum age 13 requirement), and FTC Act Section 5 unfair/deceptive practices frameworks; compliance teams should note that the AI training use of user content — including potentially sensitive written communications — may require updated consent mechanisms under emerging EU AI Act obligations and state-level privacy statutes. The broad content license combined with the disclaimer of liability for AI-generated suggestions creates material exposure for enterprise customers operating in regulated industries such as legal, healthcare, or financial services.
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