Stability AI limits its legal responsibility for losses you experience from using its services, excluding indirect and consequential damages such as lost profits or data, to the maximum extent allowed by law.
This analysis describes what Stability AI'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
This clause significantly limits the categories of losses users can recover from Stability AI, which may be particularly relevant for businesses that suffer financial harm from service disruptions, data loss, or harmful AI outputs.
Interpretive note: The enforceability of this limitation against consumers varies by jurisdiction; EU and UK statutory rights may override the contractual exclusion in part or in full.
Under this provision, users cannot recover from Stability AI for indirect losses such as lost profits, lost data, or loss of goodwill arising from service failures or AI output issues, to the extent permitted by applicable law in the user's jurisdiction.
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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.
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"To the maximum extent permitted by applicable law, in no event shall Stability AI, its directors, employees, partners, agents, suppliers, or affiliates, be liable for any indirect, incidental, special, consequential or punitive damages, including without limitation, loss of profits, data, use, goodwill, or other intangible losses, resulting from your access to or use of (or inability to access or use) the Services.— Excerpt from Stability AI's Stability AI Terms of Service
1. REGULATORY LANDSCAPE: Limitation of liability clauses in consumer contracts may require evaluation under EU Directive 93/13/EEC and the UK Consumer Rights Act 2015, which may limit the enforceability of such clauses against consumers. In the US, limitation of liability clauses in commercial contracts are generally enforceable subject to unconscionability standards and jurisdiction-specific consumer protection statutes. The qualifier 'to the maximum extent permitted by applicable law' acknowledges that statutory consumer rights may override this limitation in some jurisdictions. 2. GOVERNANCE EXPOSURE: Medium. The broad exclusion of indirect and consequential damages is standard in technology service agreements but is operationally significant for enterprise users who rely on Stability AI for business-critical functions. The absence of a financial liability cap stated in absolute terms (such as a multiple of fees paid) leaves the residual scope of liability unclear. 3. JURISDICTION FLAGS: EU and UK consumers retain statutory rights that may not be waivable by contract, meaning this limitation may not be fully enforceable against consumers in those jurisdictions. California and other US states have consumer protection statutes that may limit the scope of liability exclusions. Enterprise users should assess whether the liability limitation is consistent with their own customer-facing service commitments. 4. CONTRACT AND VENDOR IMPLICATIONS: Procurement and legal teams should confirm whether enterprise agreements include a specified financial liability cap and whether the limitation of liability clause is modified for business customers. The absence of carve-outs for gross negligence or willful misconduct is a commercially material omission that procurement teams should address in contract negotiations. 5. COMPLIANCE CONSIDERATIONS: Organizations relying on Stability AI for regulated activities should assess whether the liability limitation is compatible with their own regulatory obligations, particularly in sectors such as financial services, healthcare, or legal services where output accuracy is material. Vendor risk assessments should document the liability exposure created by this clause.
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This clause significantly limits the categories of losses users can recover from Stability AI, which may be particularly relevant for businesses that suffer financial harm from service disruptions, data loss, or harmful AI outputs.
Under this provision, users cannot recover from Stability AI for indirect losses such as lost profits, lost data, or loss of goodwill arising from service failures or AI output issues, to the extent permitted by applicable law in the user's jurisdiction.
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