The agreement limits Leonardo AI's liability to the maximum extent permitted by law, excluding indirect, incidental, special, consequential, or exemplary damages including loss of profits, data, or goodwill arising from use of or inability to use the platform.
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 provision establishes a broad limitation of Leonardo AI's financial exposure across all categories of indirect harm, which is operationally significant for users who experience data loss, service outages, or content removal that affects commercial workflows. The clause is qualified by applicable law, which may limit its enforceability in consumer-protective jurisdictions.
Interpretive note: Enforceability of the limitation of liability clause varies by jurisdiction; consumer protection frameworks in Australia, EU, and UK may limit or override the clause as applied to consumer users.
Under this clause, users may be limited in their ability to seek compensation for indirect or consequential losses, including lost revenue or data loss, arising from platform outages, account suspensions, or service failures. The provision is qualified by the phrase 'to the maximum extent permitted by applicable law,' which means enforceability may vary by jurisdiction.
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"To the maximum extent permitted by applicable law, in no event shall Leonardo AI, its affiliates, agents, directors, employees, suppliers or licensors be liable for any indirect, punitive, incidental, special, consequential or exemplary damages, including without limitation damages for loss of profits, goodwill, use, data or other intangible losses, arising out of or relating to the use of, or inability to use, this service.— Excerpt from Leonardo AI's Leonardo AI Terms of Service
(1) REGULATORY LANDSCAPE: Limitation of liability clauses are subject to consumer protection frameworks including the Australian Consumer Law (which provides non-excludable statutory guarantees), EU consumer law (Unfair Contract Terms Directive), and UK Consumer Rights Act 2015. These frameworks may limit or void the clause as applied to consumer users. The FTC's unfair or deceptive practices authority may be relevant in the US. (2) GOVERNANCE EXPOSURE: Medium. The limitation is qualified by 'to the maximum extent permitted by applicable law,' which acknowledges that local consumer protection law may override the clause. For enterprise users operating under the standard ToS, the exclusion of consequential damages including data loss and loss of profits is material to risk assessment. (3) JURISDICTION FLAGS: Australian users have non-excludable statutory guarantees under the Australian Consumer Law that may override this limitation. EU and UK consumer users may have similar protections under national consumer law. US users in states with specific consumer protection statutes should assess local applicability. (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise customers should seek indemnification provisions or service level agreements that provide remedies beyond what the standard ToS limitation of liability permits. The exclusion of data loss as a recoverable category is particularly relevant for users storing commercially valuable generated content on the platform. (5) COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the limitation of liability is enforceable as written under the consumer protection law applicable to their user base and geography. Enterprise contracts should address the gap in liability coverage for data loss and service interruption.
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This provision establishes a broad limitation of Leonardo AI's financial exposure across all categories of indirect harm, which is operationally significant for users who experience data loss, service outages, or content removal that affects commercial workflows. The clause is qualified by applicable law, which may limit its enforceability in consumer-protective jurisdictions.
Under this clause, users may be limited in their ability to seek compensation for indirect or consequential losses, including lost revenue or data loss, arising from platform outages, account suspensions, or service failures. The provision is qualified by the phrase 'to the maximum extent permitted by applicable law,' which means enforceability may vary by jurisdiction.
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