Grammarly limits its financial responsibility to you to exclude most types of damages — including lost data, lost income, or harm caused by the service not working — even if the problem was Grammarly's fault.
This analysis describes what Grammarly'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 clause means that if Grammarly loses your data, its AI gives you bad advice that causes harm, or the service fails in a way that costs you money, your ability to recover financial compensation through the agreed dispute process is significantly limited.
Interpretive note: The practical enforceability of this clause varies significantly by jurisdiction; EU and UK consumer law may render portions of this limitation inapplicable to consumers in those regions.
If Grammarly's service fails, contains errors, or causes harm — including data loss or incorrect suggestions — the company's liability for resulting financial or other damages is contractually limited to the extent permitted by law. Users in the EU may have stronger statutory protections that limit the practical effect of this clause.
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TO THE MAXIMUM EXTENT PERMITTED BY LAW, NEITHER WHATNOT NOR ITS SERVICE PROVIDERS INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SERVICES WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOST REVENUES, LOST SAVINGS, LOST BUSINESS OPPORT...
In no event will either party's aggregate liability arising out of or related to this Agreement exceed the total fees paid or payable by Customer in the twelve (12) months preceding the claim. In no event will either party be liable for any indirect, incidental, special, consequential, or punitive d...
Except as stated in Section L.3.b, the liability of each party, and its affiliates and licensors, for any damages arising out of or related to these Terms (i) excludes damages that are consequential, incidental, special, indirect, or exemplary damages, including lost profits, business, contracts, re...
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"To the maximum extent permitted by applicable law, Grammarly shall not be liable for any indirect, incidental, special, consequential, or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, resulting from your access to or use of (or inability to access or use) the Services.— Excerpt from Grammarly's Grammarly Terms of Service
REGULATORY LANDSCAPE: Limitation of liability clauses in consumer contracts engage the FTC Act (unfair or deceptive practices), the EU Unfair Contract Terms Directive, and the UK Consumer Rights Act. Many jurisdictions prohibit exclusion of liability for death or personal injury caused by negligence, and some limit exclusion clauses in consumer contracts more broadly. The qualifier 'to the maximum extent permitted by applicable law' suggests Grammarly acknowledges jurisdictional limits on this clause. GOVERNANCE EXPOSURE: Medium. Liability limitations of this type are standard in SaaS consumer agreements and are generally enforceable in the US for commercial losses. The specific exclusion of data loss as a recoverable damage category is noteworthy given that Grammarly processes user content, and data loss could constitute a material harm. Enterprise users may negotiate higher liability caps in separate agreements. JURISDICTION FLAGS: EU consumer protection law significantly limits the enforceability of liability exclusion clauses in consumer contracts. UK courts apply reasonableness tests to such clauses under the Consumer Rights Act. California's consumer protection statutes may also impose limits. The practical scope of this clause varies materially by jurisdiction. CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should negotiate explicit liability caps and data breach notification obligations in separate agreements rather than relying on this consumer ToS limitation. Vendor assessments should include review of Grammarly's cyber insurance and data breach response commitments. COMPLIANCE CONSIDERATIONS: Organizations that rely on Grammarly for business-critical writing workflows should assess their own risk exposure in the event of service failure or data loss, given that contractual recovery from Grammarly for consequential damages is limited under these terms. Data backup and redundancy practices should account for the possibility that content submitted to Grammarly may not be recoverable.
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This clause means that if Grammarly loses your data, its AI gives you bad advice that causes harm, or the service fails in a way that costs you money, your ability to recover financial compensation through the agreed dispute process is significantly limited.
If Grammarly's service fails, contains errors, or causes harm — including data loss or incorrect suggestions — the company's liability for resulting financial or other damages is contractually limited to the extent permitted by law. Users in the EU may have stronger statutory protections that limit the practical effect of this clause.
ConductAtlas has identified this type of provision across 228 platforms. See the full comparison.
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