Provision record
Twilio · Twilio Terms of Service · View original document ↗

Liability Limitation — 12-Month Fee Cap

High severity Common · 287 of 352 platforms
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Document Record

What it is

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

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.

Recent Activity

This document changed recently

Medium May 9, 2026

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 →
Medium Apr 19, 2026

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 →
Medium Apr 10, 2026

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 →

Clause Stability Stable

0
Changes
5
Months Monitored
Apr 27, 2026
First Seen
Apr 27, 2026
Last Seen
This clause type exists across 4261 other provisions on other platforms.

Change history

removed Jul 3, 2026

Removal of the specific 12-month fee cap and $100 floor eliminates a quantified liability limit that previously existed, potentially allowing Twilio to be sued for damages up to higher amounts, though replaced by a separate indirect damages exclusion.

View full change record →

Consumer impact (what this means for users)

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.

How other platforms handle this

ActiveCampaign Medium

If you knowingly misrepresent that any activity or material on our Services is infringing, you may be liable to ActiveCampaign for certain costs and damages.

Leonardo AI Medium

A party's liability for any Liability under these Terms will be reduced proportionately to the extent the relevant Liability was caused or contributed to by the actions (or inactions) of the other party...

Netflix Medium

The Netflix service and/or some of the Netflix content may not be available at any time as a result of events beyond our reasonable control...we will not be held liable should such events occur.

See all platforms with this clause type →
▸ View Original Clause Language DOCUMENT RECORD
"
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 Terms of Service

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

(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.

Insight

Unlock the full institutional analysis

Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.

Applicable agencies

  • Federal Trade Commission (ftc)
    Oversees unfair or deceptive business practices and can investigate companies that mislead consumers about data collection, sharing, or use.
    Who can file: Anyone affected by the company's practices (US or international)
    What you need: Your account details, a timeline of relevant events, and a description of the specific issue
    What to expect: Complaints inform FTC enforcement priorities and investigations but do not result in individual resolution or compensation
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Twilio Terms of Service
Entity
Twilio
Document last updated
May 5, 2026
Tracking information
First tracked
April 27, 2026
Last verified
April 27, 2026
Record ID
CA-P-003584
Document ID
CA-D-00251
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
dd88fb1d746956ef5d8534a318f62f673d24ac97e4d73bfca637a8e75c574245
Analysis generated
April 27, 2026 14:51 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Twilio
Document: Twilio Terms of Service
Record ID: CA-P-003584
Captured: 2026-04-27 14:51:24 UTC
SHA-256: dd88fb1d746956ef…
URL: https://conductatlas.com/platform/twilio/twilio-terms-of-service/provision/CA-P-003584/liability-limitation-12-month-fee-cap/
Accessed: Sept. 8, 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 Twilio's Liability Limitation — 12-Month Fee Cap clause do?

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.

How does this clause affect you?

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.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 287 platforms. See the full comparison.

Is ConductAtlas affiliated with Twilio?

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