Which regulatory agencies enforce this type of clause?

{'agency': 'FTC', 'reason': 'FTC may review overbroad liability exclusions in consumer contracts under Section 5 where they constitute unfair or deceptive terms in adhesion contracts.', 'complaint_url': 'https://reportfraud.ftc.gov/'}

What is the severity of this clause?

ConductAtlas classifies this Limitation of Liability clause as high severity. Severity reflects the magnitude of rights affected, the breadth of users impacted, and the degree of discretion the platform retains.

Do other platforms have similar clauses?

Yes. ConductAtlas has identified similar Limitation of Liability clauses across approximately 113 other tracked platforms. You can compare how platforms differ on this clause type in the cross-platform comparison view.

Limitation of Liability — Scale AI

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What it is

Scale AI will not pay you for lost profits, lost data, or other indirect harms caused by their services — even if those harms are significant.

Consumer impact (what this means for users)

If Scale AI's platform goes down and you lose business revenue, or if a bug corrupts your data, Scale AI's liability for those losses is capped or entirely excluded — leaving you to absorb the financial impact.

Cross-platform context

See how other platforms handle Limitation of Liability and similar clauses.

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Why it matters (compliance & risk perspective)

For enterprise users whose AI pipelines depend on Scale AI's data services, this clause means Scale AI faces no financial liability if their platform failures cause lost business revenue or corrupted data.

View original clause language

TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL SCALE, 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 OF PROFITS, GOODWILL, USE, DATA, OR OTHER INTANGIBLE LOSSES, ARISING OUT OF OR RELATING TO YOUR USE OF, OR INABILITY TO USE, THE SERVICES.

Institutional analysis (Compliance & legal intelligence)

REGULATORY FRAMEWORK: Governed by California UCC and common law contract principles. EU Unfair Contract Terms Directive (93/13/EEC) and EU Consumer Rights Directive (2011/83/EU) prohibit exclusion of liability for death, personal injury caused by negligence, or fraudulent misrepresentation. UK Consumer Rights Act 2015 similarly restricts exclusion of liability for negligence causing personal injury or death. FTC Act Section 5 may apply if the limitation is so broad as to be unconscionable in a consumer context.

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Applicable agencies

FTC

FTC may review overbroad liability exclusions in consumer contracts under Section 5 where they constitute unfair or deceptive terms in adhesion contracts.
File a complaint →

Provision details

Document information

Document

Scale AI Terms of Service

Entity

Scale AI

Document last updated

April 29, 2026

Tracking information

First tracked

April 30, 2026

Last verified

April 30, 2026

Record ID

CA-P-004331

Document ID

CA-D-00469

Evidence Provenance

Source URL

https://scale.com/terms

Wayback Machine

View archived versions →

SHA-256

b5bb4058a72d1d21c6706e97067d66c6b5088984116f1509d8cfe03bbd813730

Verified

✓ Snapshot stored ✓ Change verified

How to Cite

ConductAtlas Policy Archive
Entity: Scale AI | Document: Scale AI Terms of Service | Record: CA-P-004331
Captured: 2026-04-30 08:42:44 UTC | SHA-256: b5bb4058a72d1d21…
URL: https://conductatlas.com/platform/scale-ai/scale-ai-terms-of-service/limitation-of-liability/
Accessed: May 2, 2026

Classification

Severity

High

Limitation of Liability