Leonardo AI · Leonardo AI Terms of Service · View original document ↗

Liability Limitation

Medium severity Medium confidence Explicitdocumentlanguage Uncommon · 9 of 325 platforms
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What it is

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

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.

Consumer impact (what this means for users)

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.

How other platforms handle this

Whatnot Medium

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...

Cohere Medium

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...

Anthropic Medium

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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▸ View Original Clause Language DOCUMENT RECORD
"
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

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

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.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC has jurisdiction over unfair practices in consumer contracts, including liability limitation clauses that may inadequately protect consumers from harm
    File a complaint →
  • State AG
    State attorneys general may have jurisdiction over consumer protection claims where liability caps are found to be unconscionable or violate state consumer protection statutes
    File a complaint →

Applicable regulations

EU AI Act - High Risk Provisions
EU
FTC Act Section 5
United States Federal

Provision details

Document information
Document
Leonardo AI Terms of Service
Entity
Leonardo AI
Document last updated
May 5, 2026
Tracking information
First tracked
April 30, 2026
Last verified
May 10, 2026
Record ID
CA-P-009716
Document ID
CA-D-00481
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
2b4aa28838367e79528ed78e97a4197f20323f4b1ee325e30bd51e177fe19498
Analysis generated
April 30, 2026 05:15 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Leonardo AI
Document: Leonardo AI Terms of Service
Record ID: CA-P-009716
Captured: 2026-04-30 05:15:55 UTC
SHA-256: 2b4aa28838367e79…
URL: https://conductatlas.com/platform/leonardo-ai/leonardo-ai-terms-of-service/liability-limitation/
Accessed: May 13, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does Leonardo AI's Liability Limitation clause do?

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.

How does this clause affect you?

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.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 9 platforms. See the full comparison.

Is ConductAtlas affiliated with Leonardo AI?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Leonardo AI.