OpenAI · OpenAI Business Terms · View original document ↗

Limitation of Liability

Medium severity Medium confidence Explicitdocumentlanguage Common · 265 of 343 platforms
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Document Record

What it is

The agreement caps OpenAI's total financial liability to users at the greater of the fees paid in the prior 12 months or $100, and excludes indirect, consequential, and punitive damages.

This analysis describes what OpenAI'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 provision limits the financial exposure OpenAI accepts for service-related claims to a maximum of $100 for most users who have not paid fees. The exclusion of consequential and indirect damages further limits the categories of loss for which users may seek compensation.

Interpretive note: Enforceability of the liability cap against EU/EEA and UK consumers may be limited by applicable consumer protection law and GDPR; the 'maximum extent permitted by law' qualifier acknowledges this jurisdictional variance.

Change history

modified May 26, 2026

Expanded liability exclusions to explicitly include affiliates, employees, and agents; added specific exclusions for 'loss of profits or revenues' and 'loss of data, use, goodwill, or other intangible losses'; removed the specific $100 minimum cap and 12-month lookback period language (text appears truncated in current version).

View full change record →

Consumer impact (what this means for users)

Under this clause, the maximum amount a user can recover from OpenAI for most service-related claims is the greater of fees paid in the prior year or $100. Losses such as lost profits, lost data, or indirect damages are excluded from recoverable amounts under this clause.

How other platforms handle this

ConvertKit Medium

To the maximum extent permitted by applicable law, Kit shall not be liable for any indirect, incidental, special, consequential or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, resulting ...

Pinterest Medium

To the maximum extent permitted by applicable law, Pinterest shall not be liable for any indirect, incidental, special, consequential, or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, res...

Hulu Medium

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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▸ View Original Clause Language DOCUMENT RECORD
"
To the maximum extent permitted by law, neither OpenAI nor any of our affiliates, employees, or agents will be liable for any indirect, incidental, special, consequential, or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses resulting from your use of our Services. In no event shall OpenAI's total liability exceed the greater of the amount you paid for the Service that gave rise to the claim in the prior 12 months or $100.

— Excerpt from OpenAI's OpenAI Business Terms

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(1) REGULATORY LANDSCAPE: Liability caps and consequential damage exclusions in consumer contracts may be subject to review under EU Directive 93/13/EEC on unfair contract terms, which can render such clauses unenforceable against EU consumers for losses caused by the provider's negligence or breach. Under GDPR, liability for data protection violations cannot be contractually waived. Relevant enforcement authorities include EU national courts and data protection authorities. (2) GOVERNANCE EXPOSURE: Medium. For enterprise API customers, the $100 floor is operationally significant relative to the scale of potential service disruption or data loss. The 'maximum extent permitted by law' qualifier preserves statutory rights that cannot be waived, but the practical ceiling is low for most users. (3) JURISDICTION FLAGS: EU/EEA and UK consumers may retain statutory rights that limit the enforceability of this cap for claims involving negligence or breach of implied terms. California consumers may have rights under state consumer protection law that interact with this provision. The clause is most clearly enforceable in commercial (non-consumer) US contracts. (4) CONTRACT AND VENDOR IMPLICATIONS: Operators and enterprise customers should assess whether this cap is consistent with their own vendor risk frameworks and whether enhanced liability terms are available through negotiated commercial agreements with OpenAI. (5) COMPLIANCE CONSIDERATIONS: For operators who have made commitments to their own customers regarding service availability or data integrity, the gap between OpenAI's liability cap and the operator's own exposure represents a contractual risk that should be evaluated in vendor assessment processes.

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Applicable agencies

  • FTC
    The FTC has authority to review consumer contract terms that may constitute unfair or deceptive practices, including liability caps that limit consumer remedies.
    File a complaint →

Applicable regulations

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

Provision details

Document information
Document
OpenAI Business Terms
Entity
OpenAI
Document last updated
May 11, 2026
Tracking information
First tracked
May 21, 2026
Last verified
May 21, 2026
Record ID
CA-P-011630
Document ID
CA-D-00755
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
6bcccb90a775c54c7b7d211635409fb466dbe6ee712be486b3d17f2120003b35
Analysis generated
May 21, 2026 00:13 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: OpenAI
Document: OpenAI Business Terms
Record ID: CA-P-011630
Captured: 2026-05-21 00:13:45 UTC
SHA-256: 6bcccb90a775c54c…
URL: https://conductatlas.com/platform/openai/openai-business-terms/limitation-of-liability/
Accessed: June 27, 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 OpenAI's Limitation of Liability clause do?

This provision limits the financial exposure OpenAI accepts for service-related claims to a maximum of $100 for most users who have not paid fees. The exclusion of consequential and indirect damages further limits the categories of loss for which users may seek compensation.

How does this clause affect you?

Under this clause, the maximum amount a user can recover from OpenAI for most service-related claims is the greater of fees paid in the prior year or $100. Losses such as lost profits, lost data, or indirect damages are excluded from recoverable amounts under this clause.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 265 platforms. See the full comparison.

Is ConductAtlas affiliated with OpenAI?

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