OpenAI · OpenAI Terms of Use

Limitation of Liability

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What it is

To the maximum extent permitted by law, OpenAI's total liability for any claims arising under these Terms will not exceed the greater of the amount you paid to OpenAI in the past 12 months or $100.

Why it matters

This liability cap means that even if OpenAI's AI outputs cause significant real-world harm — such as incorrect medical, legal, or financial information acted upon in good faith — your maximum legal recovery is effectively capped at $100 for free tier users, which is far below typical actual damages in AI-related harm scenarios.

Consumer impact

OpenAI's Terms of Use affect consumers primarily through the default permission for OpenAI to use conversation data — including prompts and AI outputs — to improve its AI models, which means sensitive or personal information shared with ChatGPT may be retained and analyzed beyond the immediate session. Minors under 13 are prohibited from using the services, and those aged 13–17 require verifiable parental consent, but the adequacy of age verification mechanisms is not detailed in the terms themselves. You can opt out of having your conversations used for model training by navigating to your ChatGPT account settings and disabling the 'Improve the model for everyone' toggle.

Applicable agencies

  • FTC
    A $100 liability cap in a consumer contract for AI-generated harm may constitute an unfair or deceptive practice under FTC Act Section 5 if consumers are not adequately informed of this limitation and its practical implications.
    File a complaint →
  • State AG
    State consumer protection statutes, particularly California's CLRA, may render this liability cap unconscionable or unenforceable in consumer-facing AI service agreements.
    File a complaint →

Provision details

Document information
Document
OpenAI Terms of Use
Entity
OpenAI
Document last updated
March 24, 2026
Tracking information
First tracked
March 10, 2026
Last verified
April 4, 2026
Record ID
CA-P-000078
Document ID
CA-D-00009
Evidence Provenance
Source URL
Wayback Machine
SHA-256
6ae7df627f8ff0f0434212dde1986e4d1bfced272b18d29c3cea01e80cf3dbb0
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: OpenAI | Document: OpenAI Terms of Use | Record: CA-P-000078
Captured: 2026-03-10 03:23:22 UTC | SHA-256: 6ae7df627f8ff0f0…
URL: https://conductatlas.com/platform/openai/openai-terms-of-use/limitation-of-liability/
Accessed: April 4, 2026
Classification
Severity
High
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