The agreement caps recoverable damages at one month of service fees for paid services, or ten dollars for free services, and prohibits recovery of consequential, lost profits, special, indirect, incidental, or punitive damages. This cap applies to all claims related to the terms, services, or associated software.
This analysis describes what Microsoft Copilot'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 the maximum financial exposure Microsoft and its affiliates, resellers, distributors, and vendors accept under these terms. The damage cap applies to all covered claims regardless of the nature of the loss, including data loss, service unavailability, or breach of the agreement.
⚠ The damage cap and exclusions will apply as written to any future claims against Microsoft under these terms
Cross-platform context
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Compare across platforms →"If you have any basis for recovering damages (including breach of these Terms), you agree that your exclusive remedy is to recover, from Microsoft or any affiliates, resellers, distributors, Third-Party Apps and Services providers, and vendors, direct damages up to an amount equal to your Services fee for the month during which the loss or breach occurred (or up to $10.00 if the Services are free). You can't recover any other damages or losses, including direct, consequential, lost profits, special, indirect, incidental, or punitive.Excerpt from Microsoft Copilot's Terms of Service
(1) REGULATORY LANDSCAPE: Limitations of liability in consumer contracts interact with state consumer protection statutes, including California Consumer Legal Remedies Act and similar laws in other states, which may restrict contractual limitations on damages in …
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This provision establishes the maximum financial exposure Microsoft and its affiliates, resellers, distributors, and vendors accept under these terms. The damage cap applies to all covered claims regardless of the nature of the loss, including data loss, service unavailability, or breach of the agreement.
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