Udemy · Udemy Terms of Use · View original document ↗

Limitation of Liability

Medium severity Medium confidence Explicitdocumentlanguage Common · 228 of 325 platforms
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Document Record

What it is

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

The clause establishes the scope of Udemy's financial exposure in dispute scenarios by carving out entire categories of damages from recoverable liability. This defines the baseline risk allocation between the platform and users for operational disruptions or service failures.

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.

Consumer impact (what this means for users)

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.

How other platforms handle this

Cohere Medium

In no event will either party's aggregate liability arising out of or related to this Agreement exceed the total fees paid or payable by Customer in the twelve (12) months preceding the claim. In no event will either party be liable for any indirect, incidental, special, consequential, or punitive d...

DeepSeek Medium

IN NO EVENT WILL DEEPSEEK OR ITS AFFILIATES BE LIABLE UNDER ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, TORT, NEGLIGENCE, PRODUCTS LIABILITY, OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES OR LOST PROFITS, EVEN IF DEEPSEEK OR ITS AFFILIATES HAVE ...

Perplexity AI Medium

TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL PERPLEXITY, ITS AFFILIATES, LICENSORS, SERVICE PROVIDERS, EMPLOYEES, AGENTS, OFFICERS, OR DIRECTORS BE LIABLE FOR ANY INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS O...

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▸ View Original Clause Language DOCUMENT RECORD
"
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

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(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.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC oversees unfair or deceptive trade practices, including contract terms that broadly disclaim liability in ways that may harm consumers
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Udemy Terms of Use
Entity
Udemy
Document last updated
May 5, 2026
Tracking information
First tracked
May 10, 2026
Last verified
May 10, 2026
Record ID
CA-P-008494
Document ID
CA-D-00163
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
d292f331a461be318cd63d422d6ca77d5761360ac5ffdfc318f15cfbc94ef5c0
Analysis generated
May 10, 2026 07:20 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Udemy
Document: Udemy Terms of Use
Record ID: CA-P-008494
Captured: 2026-05-10 07:20:31 UTC
SHA-256: d292f331a461be31…
URL: https://conductatlas.com/platform/udemy/udemy-terms-of-use/limitation-of-liability/
Accessed: May 20, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does Udemy's Limitation of Liability clause do?

The clause establishes the scope of Udemy's financial exposure in dispute scenarios by carving out entire categories of damages from recoverable liability. This defines the baseline risk allocation between the platform and users for operational disruptions or service failures.

How does this clause affect you?

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.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 228 platforms. See the full comparison.

Is ConductAtlas affiliated with Udemy?

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