Twilio limits its liability to you by excluding consequential, punitive, and similar damages, meaning you generally cannot recover lost profits or other indirect losses from Twilio even if their service fails.
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
This provision limits the financial recovery available to customers who experience service failures, data loss, or other harms attributable to Twilio's services, as indirect and consequential damages are excluded.
Interpretive note: Enforceability of consequential damages exclusions varies by jurisdiction; EU/EEA and UK law may impose limits on such exclusions that qualify their effect in those markets.
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 new standalone provision caps Twilio's liability for indirect and consequential damages with explicit carve-outs for loss of profits, goodwill, and data, whereas the previous version capped total aggregate liability to 12 months of fees.
View full change record →Business customers and developers who suffer lost revenue, reputational harm, or data loss due to Twilio service issues are contractually limited in their ability to recover those damages from Twilio, as the agreement excludes consequential and indirect damages.
How other platforms handle this
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 ...
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...
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.
Monitoring
Twilio has changed this document before.
Receive same-day alerts, structured change summaries, and monitoring for up to 25 platforms.
"IN NO EVENT WILL TWILIO, ITS AFFILIATES, OFFICERS, EMPLOYEES, AGENTS, SUPPLIERS OR LICENSORS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO, DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, DATA OR OTHER INTANGIBLE LOSSES (EVEN IF TWILIO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES) ARISING OUT OF OR RELATING TO YOUR ACCESS TO OR USE OF, OR YOUR INABILITY TO ACCESS OR USE, THE SERVICES.— Excerpt from Twilio's Twilio Terms of Service
(1) REGULATORY LANDSCAPE: Limitation of liability clauses excluding consequential damages are standard in commercial software and API agreements and are generally enforceable under US contract law, subject to exceptions for gross negligence, willful misconduct, or statutory obligations. Enforceability varies by jurisdiction; some EU member states limit the extent to which liability can be excluded for certain categories of loss. (2) GOVERNANCE EXPOSURE: Medium. The exclusion of consequential damages including loss of profits and data losses may create a significant gap between actual business harm from a service outage or failure and recoverable damages. Organizations with high-revenue dependencies on Twilio should factor this limitation into their vendor risk assessments. (3) JURISDICTION FLAGS: UK and EU jurisdictions may not permit exclusion of liability for certain categories of loss, particularly where the exclusion is considered unreasonable under the Unfair Contract Terms Act (UK) or the Unfair Contract Terms Directive (EU). (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise customers should assess whether the liability cap in the full agreement (typically tied to fees paid) is adequate given their operational dependency on Twilio. Negotiating a higher cap or specific carve-outs for data breaches or material service failures is advisable for high-dependency deployments. (5) COMPLIANCE CONSIDERATIONS: Legal teams should review the full liability cap provision alongside this consequential damages exclusion to understand the practical ceiling on recoverable damages. Business continuity and insurance programs should be calibrated to account for the limitations on contractual recovery from Twilio.
Full compliance analysis
Regulatory citations, enforcement risk, and due diligence action items.
Free: track 1 platform + weekly digest. Monitor: 25 platforms + same-day alerts. No credit card required.
Compliance Governance Intelligence
Need to monitor specific governance provisions?
Compliance includes provision-level monitoring, governance timelines, regulatory mapping, and audit-ready analysis.
Built from archived source documents, structured governance mappings, and historical version tracking.
This provision limits the financial recovery available to customers who experience service failures, data loss, or other harms attributable to Twilio's services, as indirect and consequential damages are excluded.
Business customers and developers who suffer lost revenue, reputational harm, or data loss due to Twilio service issues are contractually limited in their ability to recover those damages from Twilio, as the agreement excludes consequential and indirect damages.
ConductAtlas has identified this type of provision across 265 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Twilio.