No matter how serious Twilio's error or failure, they will only pay back up to what you paid them in the last 12 months — and they will never pay for lost profits, lost data, or consequential damages.
This analysis describes what Twilio'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
The liability limitation defines the maximum financial exposure Twilio assumes under the service agreement and restricts the categories of damages available in dispute resolution. This structure allocates risk by capping recoverable amounts and excluding entire classes of damages from Twilio's liability scope.
The updated terms establish a different dispute resolution process for customers domiciled or registered in Mexico. Previously, Mexico was subject to the standard arbitration venue clause routing disputes to San Francisco, California. Under the revised agreement, Mexican customers must first engage in good faith negotiations with Twilio's senior representatives for 30 days; if unresolved, disputes proceed to binding arbitration under Centro de Arbitraje de México (CAM) rules, conducted in English in Mexico City before a sole arbitrator. The agreement also explicitly states that Mexican consumer protection law (Ley Federal de Protección al Consumidor) does not apply to the commercial relationship between the parties. Mexico-domiciled customers should review the updated dispute resolution procedures and understand that consumer protection law carve-out before continuing use.
View change record →The updated terms establish two new regional service entities: CISA Telecomunicaciones for Mexico and Teravoz Telecom for Brazil, meaning customers in those jurisdictions will contract with the local entity rather than Twilio Inc. The agreement now permits orders to be placed through Twilio's online self-service purchasing workflow in addition to traditional written order forms, streamlining how purchase terms can be documented. The updated language also removes the prior commitment that Twilio will not materially decrease overall service functionality, replacing it with a general statement that services may change over time without specific protections on functionality levels.
View change record →The updated terms now route Twilio service agreements for Mexico and Brazil customers to new regional entities rather than Twilio Inc., which may affect service delivery, dispute resolution venue, and applicable local law. The definition of Order Form was expanded to explicitly include self-service online purchases, clarifying that terms negotiated through Twilio's account interface carry the same contractual weight as traditional executed agreements. The terms also removed language stating that Twilio would not materially decrease overall service functionality, replacing it with a simpler statement that services may change over time, which narrows the operational commitment Twilio makes regarding service stability. You can review the separate agreements that now govern your use based on your regional location.
View change record →This clause means Twilio's financial exposure to its customers is capped at their prior 12 months of fees — meaning a major platform failure causing millions in regulatory fines or customer harm could leave businesses with inadequate compensation from Twilio.
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"To the maximum extent permitted by law, the total aggregate liability of Twilio to you for any claims arising under or related to these Terms or the Services will not exceed the greater of (a) the amounts paid by you to Twilio during the twelve (12) month period immediately preceding the event giving rise to the claim, or (b) one hundred dollars ($100). In no event will Twilio be liable for any indirect, incidental, special, consequential, exemplary, or punitive damages.— Excerpt from Twilio's Twilio Terms of Service
(1) REGULATORY FRAMEWORK: Limitation of liability clauses in commercial contracts are assessed under the Uniform Commercial Code (UCC) §2-719 for goods and general common law for services. California courts assess these clauses under Cal. Civ. Code §1668 (which voids clauses exempting willful injury or gross negligence). GDPR Art. 82 preserves data subjects' rights to full compensation for damages regardless of contractual liability caps between controllers and processors. (2)
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The liability limitation defines the maximum financial exposure Twilio assumes under the service agreement and restricts the categories of damages available in dispute resolution. This structure allocates risk by capping recoverable amounts and excluding entire classes of damages from Twilio's liability scope.
This clause means Twilio's financial exposure to its customers is capped at their prior 12 months of fees — meaning a major platform failure causing millions in regulatory fines or customer harm could leave businesses with inadequate compensation from Twilio.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Twilio.