Udemy limits its financial liability to users to the greatest extent allowed by law, excluding responsibility for indirect or consequential damages like lost profits, data loss, or other non-direct harms.
This analysis describes what Udemy'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
If Udemy's platform causes you significant harm, such as loss of business revenue due to a service outage or data loss, this clause limits what you can recover from Udemy in a legal claim.
Interpretive note: The 'to the maximum extent permitted by law' qualifier means actual enforceability depends on jurisdiction, and EU, UK, and some US state laws may significantly limit the practical reach of this clause.
Users who suffer indirect losses from using or being unable to use Udemy, including instructors who lose revenue due to platform outages or errors, may have limited ability to recover those losses from Udemy under this provision.
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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 LAW, UDEMY 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 FROM YOUR ACCESS TO OR USE OF OR INABILITY TO ACCESS OR USE THE SERVICES.— Excerpt from Udemy's Udemy Terms of Use
(1) REGULATORY LANDSCAPE: Limitation of liability clauses in consumer contracts engage FTC Act consumer protection standards and, in the EU, the Unfair Contract Terms Directive, which may render broad liability exclusions unenforceable against consumers. UK consumer law under the Consumer Rights Act 2015 also limits the use of exclusion clauses in consumer contracts. The 'to the maximum extent permitted by law' qualifier reflects awareness that these limitations may not hold in all jurisdictions. (2) GOVERNANCE EXPOSURE: Medium. This is a standard limitation of liability clause common across digital platforms. However, it is drafted broadly enough to cover instructor revenue losses resulting from Udemy platform errors or policy changes, which may be material for professional instructors. (3) JURISDICTION FLAGS: EU and UK consumers have the strongest grounds to challenge this clause as an unfair contract term, particularly where it excludes liability for Udemy's own negligence. Some US state laws, including California, may also limit the enforceability of broad consequential damages exclusions in consumer contracts. (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise clients should assess whether this limitation of liability cap is acceptable for their use case, particularly where Udemy is being used for business-critical training delivery. Standard enterprise agreements typically negotiate higher liability caps and carve-outs for gross negligence and willful misconduct. (5) COMPLIANCE CONSIDERATIONS: Institutional purchasers relying on Udemy for compliance training delivery should confirm whether this limitation of liability creates unacceptable risk if Udemy fails to deliver mandated training content, and should consider whether contractual protections or alternative platforms are needed for high-stakes compliance training scenarios.
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If Udemy's platform causes you significant harm, such as loss of business revenue due to a service outage or data loss, this clause limits what you can recover from Udemy in a legal claim.
Users who suffer indirect losses from using or being unable to use Udemy, including instructors who lose revenue due to platform outages or errors, may have limited ability to recover those losses from Udemy under this provision.
ConductAtlas has identified this type of provision across 266 platforms. See the full comparison.
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