Segment · Segment Terms of Service · View original document ↗

Limitation of Liability (12-Month Fee Cap)

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Document Record

What it is

If Twilio causes you harm, the maximum amount you can recover from them is either the total fees you paid in the last 12 months or $100 — whichever is greater.

This analysis describes what Segment'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)

The liability cap creates a defined upper bound on Twilio's financial exposure across all dispute categories and legal theories. This establishes predictable cost parameters for service operations and claim resolution.

Recent Activity

This document changed recently

Medium May 9, 2026

The updated terms establish a binding arbitration requirement for users domiciled or registered in Mexico, replacing prior dispute resolution procedures. Under the revised Section 10.5, Mexico-domiciled users must first engage in good faith negotiations with Segment for up to 30 days, and if unresolved, disputes proceed to binding arbitration administered by the Centro de Arbitraje de México (CAM) in Mexico City before a sole arbitrator, with both parties splitting arbitration costs. Additionally, the agreement now explicitly carves out Mexico's Federal Consumer Protection Law (Ley Federal de Protección al Consumidor), stating it does not apply to this commercial agreement. Mexico users also face a new obligation to comply with anti-money laundering and anti-corruption requirements under applicable Mexican law.

View change record →
Medium May 5, 2026

Segment's updated terms now apply Japan-specific dispute resolution, verification, and tax requirements to customers domiciled or registered in Japan. The agreement now states that arbitration proceedings for Japanese customers will take place in Mexico City, Japan (implied Tokyo venue under the new Japan section), conducted in English. Japanese customers may be required to submit government-issued ID documents and complete verification processes as required under applicable Japanese law, including the Act on Prevention of Transfer of Criminal Proceeds and the Telecommunications Business Act. All fees are payable in Japanese Yen, and taxes will include Japanese consumption tax. Intellectual property rights now incorporate Japanese Copyright Act provisions. You can review the specific verification requirements by contacting Segment or reviewing the applicable service section.

View change record →

Consumer impact (what this means for users)

A business that relies heavily on Twilio's APIs for customer communications could suffer millions in lost revenue from a service disruption yet recover only its prior-year subscription fees — potentially a fraction of the actual loss.

How other platforms handle this

Pinterest Medium

To the maximum extent permitted by applicable law, Pinterest shall not be liable for any indirect, incidental, special, consequential, or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, res...

ConvertKit Medium

To the maximum extent permitted by applicable law, Kit shall not be liable for any indirect, incidental, special, consequential or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, resulting ...

Hulu Medium

You will remain responsible for any amounts you fail to pay in connection with your subscription, including collection costs, bank overdraft fees, collection agency fees, reasonable attorneys' fees, and arbitration or court costs.

See all platforms with this clause type →

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▸ View Original Clause Language DOCUMENT RECORD
"
IN NO EVENT WILL TWILIO'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT UNDER ANY LEGAL OR EQUITABLE THEORY, INCLUDING BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, AND OTHERWISE EXCEED THE GREATER OF (I) THE TOTAL AMOUNTS PAID BY YOU TO TWILIO IN THE TWELVE (12) MONTHS PRIOR TO THE EVENT GIVING RISE TO THE CLAIM, OR (II) ONE HUNDRED DOLLARS ($100).

— Excerpt from Segment's Segment Terms of Service

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

REGULATORY FRAMEWORK: Limitation of liability clauses are governed by UCC Article 2 and common law contract principles. In EU jurisdictions, such caps may be unenforceable under national implementation of EU Directive 93/13/EEC on unfair contract terms if deemed unconscionable, and GDPR Art. 82 preserves data subjects' rights to full compensation that cannot be contractually limited.

Full compliance analysis

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

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Applicable agencies

  • FTC
    The FTC may review liability caps as potentially unfair or deceptive commercial practices under FTC Act Section 5, particularly where they prevent meaningful redress for significant consumer or business harms.
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Segment Terms of Service
Entity
Segment
Document last updated
May 5, 2026
Tracking information
First tracked
May 8, 2026
Last verified
May 8, 2026
Record ID
CA-P-006408
Document ID
CA-D-00699
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
977430b2264496ecbdb714c775602a9bdf2f57f24a6495ba35f765f94113b442
Analysis generated
May 8, 2026 09:56 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Segment
Document: Segment Terms of Service
Record ID: CA-P-006408
Captured: 2026-05-08 09:56:53 UTC
SHA-256: 977430b2264496ec…
URL: https://conductatlas.com/platform/segment/segment-terms-of-service/limitation-of-liability-12-month-fee-cap/
Accessed: June 30, 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 Segment's Limitation of Liability (12-Month Fee Cap) clause do?

The liability cap creates a defined upper bound on Twilio's financial exposure across all dispute categories and legal theories. This establishes predictable cost parameters for service operations and claim resolution.

How does this clause affect you?

A business that relies heavily on Twilio's APIs for customer communications could suffer millions in lost revenue from a service disruption yet recover only its prior-year subscription fees — potentially a fraction of the actual loss.

Is ConductAtlas affiliated with Segment?

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