Khan Academy limits its legal exposure by disclaiming responsibility for most types of damages that could result from using the platform, including lost data or harm resulting from service outages or errors.
This analysis describes what Khan Academy'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
If something goes wrong with the service and causes you harm, this clause limits what you can recover from Khan Academy, potentially including situations where student learning data is lost or corrupted.
The limitation of liability clause means that if Khan Academy's service causes harm, for example through data loss, a security breach affecting student records, or service failure, users' ability to recover damages beyond direct losses may be significantly constrained. Applicable law in some jurisdictions may limit the enforceability of this clause, particularly for EU/EEA consumers.
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You will remain responsible for any amounts you fail to pay in connection with your subscription, including collection costs, bank overdraft fees, collection agency fees, reasonable attorneys' fees, and arbitration or court costs.
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"To the maximum extent permitted by applicable law, Khan Academy shall not be liable for any indirect, incidental, special, consequential, or punitive damages, including loss of profits, data, or goodwill, arising out of or in connection with these Terms or your use of the Service, even if Khan Academy has been advised of the possibility of such damages.— Excerpt from Khan Academy's Khan Academy Terms of Service
REGULATORY LANDSCAPE: Broad liability limitations are standard in consumer internet agreements and generally enforceable in the U.S. under contract law, subject to state-specific unconscionability doctrines. EU Unfair Contract Terms Directive and national implementations in EU member states may render blanket liability exclusions unenforceable against consumers. FERPA does not create a private right of action, so student data breach liability is primarily governed by contract and applicable state breach notification laws. GOVERNANCE EXPOSURE: Medium. The clause is standard but its application to student data breaches or educational continuity failures creates reputational and regulatory exposure beyond the contractual limitation itself. State data breach notification laws and the School Agreement's specific provisions would govern the remediation obligations following a breach, which the liability cap does not eliminate. JURISDICTION FLAGS: EU/EEA consumers are likely protected from broad liability exclusions under consumer protection law. California's CCPA creates statutory damages for certain data breaches that cannot be contractually limited. Illinois, New York, and other states with strong consumer protection statutes may also limit enforceability of this clause in specific contexts. CONTRACT AND VENDOR IMPLICATIONS: School districts should assess whether the School Agreement contains separate and potentially broader liability provisions, particularly regarding data breach notification obligations, indemnification, and cyber insurance requirements. Standard institutional procurement practice is to negotiate reciprocal indemnification and minimum liability caps based on contract value or data sensitivity. COMPLIANCE CONSIDERATIONS: Institutions should not rely on this clause as a complete shield against regulatory obligations, including state breach notification requirements and FERPA incident response obligations, which exist independently of the contractual limitation. Cyber insurance policies should be reviewed to confirm coverage aligns with the risks not addressed by this limitation.
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If something goes wrong with the service and causes you harm, this clause limits what you can recover from Khan Academy, potentially including situations where student learning data is lost or corrupted.
The limitation of liability clause means that if Khan Academy's service causes harm, for example through data loss, a security breach affecting student records, or service failure, users' ability to recover damages beyond direct losses may be significantly constrained. Applicable law in some jurisdictions may limit the enforceability of this clause, particularly for EU/EEA consumers.
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