OpenAI · Terms of Use (ROW)

Limitation of Liability

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What it is

To the extent permitted by law, neither we nor any of the OpenAI parties will be liable for any indirect, incidental, special, consequential, or punitive damages, or loss of profits, revenues, data, or goodwill. In all cases, OpenAI's aggregate liability will not exceed the greater of the amount you paid us in the three months before the claim or $100.

Why it matters

If you suffer significant harm — financial loss, reputational damage, or disruption to your business — as a result of ChatGPT errors, hallucinations, or a service outage, OpenAI's legal exposure is capped at a trivial amount that likely won't cover your actual losses.

Consumer impact

OpenAI's Terms of Use give the company a broad license to use content you submit — including your conversations with ChatGPT — to train and improve its AI models, which means your personal inputs could influence future AI behavior at scale. The mandatory arbitration clause and class action waiver significantly limit your ability to seek collective legal remedies if something goes wrong, a provision that may surprise many everyday users. You can opt out of having your data used for model training by going to Settings > Data Controls in your ChatGPT account and disabling 'Improve the model for everyone.'

Applicable agencies

  • FTC
    The FTC has authority to investigate whether a $100 liability cap presented to consumers constitutes an unfair or deceptive act where actual consumer harm from AI errors may far exceed this amount.
    File a complaint →
  • State AG
    State Attorneys General in California, New York, and other states have authority to challenge unconscionable liability caps in consumer adhesion contracts under state consumer protection and contract law.
    File a complaint →

Provision details

Document information
Document
Terms of Use (ROW)
Entity
OpenAI
Document last updated
March 5, 2026
Tracking information
First tracked
March 10, 2026
Last verified
April 4, 2026
Record ID
CA-P-001995
Document ID
CA-D-00007
Evidence Provenance
Source URL
Wayback Machine
SHA-256
3a064f11bc2cb0f491e5ad76938f2712026c1d020c9f8b50528f8c7b639a4f7f
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: OpenAI | Document: Terms of Use (ROW) | Record: CA-P-001995
Captured: 2026-03-10 03:31:52 UTC | SHA-256: 3a064f11bc2cb0f4…
URL: https://conductatlas.com/platform/openai/terms-of-use-row/limitation-of-liability/
Accessed: April 4, 2026
Classification
Severity
High
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