No matter what harm Grammarly causes you, the most you can recover from them is either what you paid them in the last year or $20 — whichever is higher.
If Grammarly uses your confidential content improperly or exposes your data in a breach, the maximum financial compensation you can receive is $20 — effectively eliminating meaningful financial accountability.
Cross-platform context
See how other platforms handle Limitation of Liability — $20 Cap and similar clauses.
Compare across platforms →This clause means that even if Grammarly misuses your private writing, suffers a major data breach, or causes significant harm, your financial compensation is capped at a trivial amount.
(1) REGULATORY FRAMEWORK: Limitation of liability clauses in consumer contracts are subject to unconscionability analysis under the UCC and state contract law. In the EU, Unfair Contract Terms Directive (93/13/EEC) Art. 3 prohibits terms that create a significant imbalance to the consumer's detriment; a $20 cap likely fails this test for EU consumers. GDPR Art. 82 provides a separate right to compensation for data protection violations that cannot be waived by contract. California Civil Code §1668 prohibits contractual exemptions from willful injury. (2)
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