Reddit · Reddit User Agreement · View original document ↗

Limitation of Liability

High severity Common · 228 of 325 platforms
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Document Record

What it is

Reddit's liability to you is capped at $100 or the amount you paid Reddit in the past six months, whichever is greater, and Reddit excludes liability for indirect, incidental, or consequential damages including data loss.

This analysis describes what Reddit'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 establishes Reddit's maximum financial exposure in dispute scenarios, which affects the practical remedies available to users and shapes the risk allocation between the platform and its user base. The existence and structure of liability caps influence the incentive structure for platform investment in operational safeguards and dispute resolution.

Consumer impact (what this means for users)

If Reddit's negligence or breach causes you financial harm, emotional distress, or loss of valuable content or business, you are contractually limited to recovering a maximum of $100 in most cases, regardless of actual damages.

How other platforms handle this

Cohere Medium

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...

DeepSeek Medium

IN NO EVENT WILL DEEPSEEK OR ITS AFFILIATES BE LIABLE UNDER ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, TORT, NEGLIGENCE, PRODUCTS LIABILITY, OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES OR LOST PROFITS, EVEN IF DEEPSEEK OR ITS AFFILIATES HAVE ...

Perplexity AI Medium

TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL PERPLEXITY, ITS AFFILIATES, LICENSORS, SERVICE PROVIDERS, EMPLOYEES, AGENTS, OFFICERS, OR DIRECTORS BE LIABLE FOR ANY INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS O...

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ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

REGULATORY FRAMEWORK: Damages caps and consequential loss exclusions in consumer contracts are reviewed under FTC Act Section 5, EU Directive 93/13/EEC (Annex 1(a) — disproportionate damages limitations are presumptively unfair), UK Consumer Rights Act 2015 (s.62 — unfair terms assessment), and applicable state consumer protection statutes. Limitation of liability clauses cannot validly cap statutory damages under GDPR Art. 82, CCPA §1798.150, or COPPA 15 U.S.C. §6504. Personal injury damages limitations are void under consumer law in most EU member states.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    Liability caps that effectively eliminate consumer remedies for platform misconduct may constitute unfair practices under FTC Act Section 5.
    File a complaint →
  • State AG
    State Attorneys General can challenge unconscionable liability limitations under state consumer protection statutes, particularly in California (UCL, CLRA) and New York.
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Reddit User Agreement
Entity
Reddit
Document last updated
May 5, 2026
Tracking information
First tracked
April 1, 2026
Last verified
April 1, 2026
Record ID
CA-P-000720
Document ID
CA-D-00101
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
c8c5469478130cc4f3b16c167a0a958442c2e25a774f1c12fc2c40e21d445af7
Analysis generated
April 1, 2026 15:12 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Reddit
Document: Reddit User Agreement
Record ID: CA-P-000720
Captured: 2026-04-01 15:12:08 UTC
SHA-256: c8c5469478130cc4…
URL: https://conductatlas.com/platform/reddit/reddit-user-agreement/limitation-of-liability/
Accessed: May 20, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Reddit's Limitation of Liability clause do?

This provision establishes Reddit's maximum financial exposure in dispute scenarios, which affects the practical remedies available to users and shapes the risk allocation between the platform and its user base. The existence and structure of liability caps influence the incentive structure for platform investment in operational safeguards and dispute resolution.

How does this clause affect you?

If Reddit's negligence or breach causes you financial harm, emotional distress, or loss of valuable content or business, you are contractually limited to recovering a maximum of $100 in most cases, regardless of actual damages.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 228 platforms. See the full comparison.

Is ConductAtlas affiliated with Reddit?

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