OpenAI's maximum financial responsibility to you for most claims is limited to either what you paid them in the past year or $100, whichever is more.
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
This provision sets a low ceiling on what OpenAI would owe in most legal disputes, including those involving service failures, data handling issues, or other harm; for free-tier users, the cap is $100 regardless of the nature of the harm.
Interpretive note: Enforceability of the $100 cap may be limited in EU/UK consumer contexts and may not apply to statutory damages under data protection laws; applicability to personal injury or gross negligence claims varies by jurisdiction.
Under this clause, users of free-tier OpenAI services are limited to recovering a maximum of $100 from OpenAI for most types of claims, and indirect, consequential, or punitive damages are excluded entirely under the terms.
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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...
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...
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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"To the maximum extent permitted by law, neither OpenAI nor any of its affiliates, licensors, or service providers will be liable for any indirect, incidental, special, consequential, or punitive damages. OpenAI's total liability for any claims under these Terms is limited to the greater of the amount you paid to OpenAI in the 12 months before the claim or $100.— Excerpt from OpenAI's OpenAI Service Terms
REGULATORY LANDSCAPE: Limitation of liability clauses are common in technology service agreements and are generally enforceable under US contract law, though courts may decline to enforce them where the limitation is unconscionable or where the harm involves gross negligence or willful misconduct; EU consumer protection law under the Unfair Contract Terms Directive may limit the enforceability of liability caps against consumers in EU member states. The FTC Act's prohibition on unfair or deceptive practices may be relevant if the liability limitation is applied in ways that conflict with consumer protection representations. GOVERNANCE EXPOSURE: Medium. The $100 floor provides minimal financial recourse for free-tier users; however, limitations of liability in technology services are commonly observed and typically enforceable under US law with the noted exceptions. JURISDICTION FLAGS: EU and UK consumer protection law may render this clause unenforceable or limit its application against consumers; California courts have invalidated liability caps in certain consumer contexts; the clause may not limit liability for personal injury or death caused by negligence in applicable jurisdictions. CONTRACT AND VENDOR IMPLICATIONS: Enterprise customers should negotiate separate liability terms in commercial agreements with OpenAI, as the $100 consumer-tier cap would be commercially inadequate for business use cases involving significant data or operational reliance on the services. COMPLIANCE CONSIDERATIONS: Legal teams should evaluate whether the limitation of liability clause is disclosed with sufficient prominence, whether it applies to data protection violations in jurisdictions with statutory damages frameworks, and whether enterprise agreements contain separate provisions.
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This provision sets a low ceiling on what OpenAI would owe in most legal disputes, including those involving service failures, data handling issues, or other harm; for free-tier users, the cap is $100 regardless of the nature of the harm.
Under this clause, users of free-tier OpenAI services are limited to recovering a maximum of $100 from OpenAI for most types of claims, and indirect, consequential, or punitive damages are excluded entirely under the terms.
ConductAtlas has identified this type of provision across 228 platforms. See the full comparison.
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