To the extent permitted by law, we exclude all implied warranties, guarantees or conditions. We provide the Services 'as is.' We don't guarantee the accuracy or timeliness of information available from the services. To the extent permitted under your local law, if you have any basis for recovering damages, you can only recover from Microsoft and its suppliers direct damages up to the amount you paid us in the prior twelve months.
For free-tier Copilot users, this clause effectively means Microsoft has zero financial liability to you even if the service causes you harm — the liability cap is literally $0 for users who pay nothing.
This agreement significantly affects consumers by requiring US-based users to resolve disputes through binding arbitration rather than in court unless they actively opt out within 30 days, eliminating class action rights for those who miss the deadline. Microsoft retains broad rights to modify, suspend, or terminate services and accounts without prior notice in many circumstances, and acquires a wide license to use content users submit through its services. You can opt out of the arbitration clause by sending a written notice to Microsoft Corporation, ATTN: CELA Arbitration Opt-Out, One Microsoft Way, Redmond, WA 98052 within 30 days of first accepting the agreement.