If Leonardo.Ai causes you loss or harm, the most they are required to pay you is the higher of what you paid in subscription fees over the previous three months or AUD $100, whichever is greater.
This analysis describes what Leonardo AI'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 cap means that even if you suffer significant financial or other harm from the platform, your ability to recover damages is limited to a relatively small amount, which may be substantially less than your actual losses.
Interpretive note: The practical enforceability of this cap depends on jurisdiction; mandatory consumer law protections in Australia, the EU, and the UK may supersede or narrow the cap's effect in consumer contexts, and the company's own disclosure acknowledges this limitation.
If you experience loss as a result of using Leonardo.Ai, your ability to recover damages is capped at the higher of your last three months of subscription fees or AUD $100, regardless of the magnitude of actual harm. Consumer law rights in your jurisdiction may provide additional protections that this cap cannot exclude.
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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 law, our total liability to you for any loss or damage arising out of or in connection with these Terms or our Services, however caused, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, is limited to the greater of: (a) the total Subscription Fees paid by you in the 3 months prior to the event giving rise to the liability; or (b) AUD $100.— Excerpt from Leonardo AI's Leonardo AI Terms of Service
1. REGULATORY LANDSCAPE: Liability caps in consumer contracts are subject to statutory consumer guarantees in Australia (Australian Consumer Law), the EU (Consumer Rights Directive), and the UK (Consumer Rights Act 2015), which cannot be excluded or limited by contract. The FTC Act and state consumer protection statutes in the US may similarly limit the practical effect of such caps on consumer remedies. The company's disclosures acknowledge that the terms do not intend to limit Consumer Law Rights. 2. GOVERNANCE EXPOSURE: Medium. The AUD $100 floor is low relative to potential losses from reliance on AI outputs in commercial contexts, and the three-month subscription fee cap may also be modest for basic-tier subscribers. Enterprise customers may have substantially greater exposure relative to the cap. The document explicitly states this cap applies 'to the maximum extent permitted by law,' which is a standard qualifier that acknowledges statutory limits on the cap's enforceability. 3. JURISDICTION FLAGS: Australian Consumer Law provides statutory guarantees for services that cannot be contractually excluded, which may supersede or constrain this cap for Australian consumers. EU consumer protection directives provide similar floor protections. California and other US states may impose minimum liability standards in consumer contexts. The cap may be of limited practical effect in jurisdictions with strong mandatory consumer protections. 4. CONTRACT AND VENDOR IMPLICATIONS: For enterprise customers using Leonardo.Ai in commercially sensitive workflows, the liability cap represents a significant asymmetry between potential business losses and available contractual remedies. B2B procurement teams should negotiate enhanced liability terms or seek indemnification provisions that more accurately reflect business risk, potentially through the additional services contract referenced in clause 2.5. 5. COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the liability cap is consistent with their organisation's risk management requirements and insurance arrangements. Where Leonardo.Ai is used in regulated industries or in connection with services that carry significant liability exposure, independent risk assessment of the gap between the cap and actual potential losses is warranted.
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This cap means that even if you suffer significant financial or other harm from the platform, your ability to recover damages is limited to a relatively small amount, which may be substantially less than your actual losses.
If you experience loss as a result of using Leonardo.Ai, your ability to recover damages is capped at the higher of your last three months of subscription fees or AUD $100, regardless of the magnitude of actual harm. Consumer law rights in your jurisdiction may provide additional protections that this cap cannot exclude.
ConductAtlas has identified this type of provision across 10 platforms. See the full comparison.
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