YouTube Ads · YouTube Terms of Service · View original document ↗

Limitation of Liability and $500 Cap

Medium severity Medium confidence Explicitdocumentlanguage Unique · 0 of 325 platforms
Share 𝕏 Share in Share 🔒 PDF
Recent governance activity YouTube Ads recorded 6 documented changes in the last 30 days.
Start monitoring updates
Monitor governance changes for YouTube Ads Create a free account to receive the weekly governance digest and monitor one platform for governance changes.
Create free account No credit card required.
Document Record

What it is

YouTube limits what it can be held responsible for paying you if something goes wrong, and the maximum it will pay out is either what it paid you in the last year or $500, whichever is more.

This analysis describes what YouTube Ads'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)

For most users who do not receive revenue from YouTube, this cap means that even if YouTube causes significant harm such as data loss, account termination, or content removal, the maximum compensation they could seek is $500.

Interpretive note: Enforceability of the $500 cap may vary significantly by jurisdiction; EU and UK consumer protection law may limit its application to individual consumers.

Consumer impact (what this means for users)

Users who suffer harm from YouTube's actions, including wrongful account suspension, data loss, or content removal, are contractually limited to recovering at most $500 or prior-year revenue, which may be far below their actual losses as creators or businesses.

How other platforms handle this

Anthropic Medium

Except as stated in Section L.3.b, the liability of each party, and its affiliates and licensors, for any damages arising out of or related to these Terms (i) excludes damages that are consequential, incidental, special, indirect, or exemplary damages, including lost profits, business, contracts, re...

Whatnot Medium

TO THE MAXIMUM EXTENT PERMITTED BY LAW, NEITHER WHATNOT NOR ITS SERVICE PROVIDERS INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SERVICES WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOST REVENUES, LOST SAVINGS, LOST BUSINESS OPPORT...

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...

See all platforms with this clause type →

Monitoring

YouTube Ads has changed this document before.

Receive same-day alerts, structured change summaries, and monitoring for up to 10 platforms.

Start Watcher free trial Or create a free account →
▸ View Original Clause Language DOCUMENT RECORD
"
EXCEPT AS REQUIRED BY APPLICABLE LAW, YOUTUBE, ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS WILL NOT BE RESPONSIBLE FOR ANY LOSS OF PROFITS, REVENUES, BUSINESS OPPORTUNITIES, GOODWILL, OR ANTICIPATED SAVINGS; LOSS OR CORRUPTION OF DATA; INDIRECT OR CONSEQUENTIAL LOSS; PUNITIVE DAMAGES... TO THE EXTENT PERMITTED BY APPLICABLE LAW, YOUTUBE AND ITS AFFILIATES' TOTAL LIABILITY FOR ANY CLAIMS ARISING FROM OR RELATING TO THE SERVICE IS LIMITED TO THE GREATER OF: (A) THE AMOUNT OF REVENUE THAT YOUTUBE HAS PAID TO YOU FROM YOUR USE OF THE SERVICE IN THE 12 MONTHS BEFORE THE DATE OF YOUR NOTICE, IN WRITING TO YOUTUBE, OF THE CLAIM AND (B) USD $500.

— Excerpt from YouTube Ads's YouTube Terms of Service

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(1) REGULATORY LANDSCAPE: Liability caps of this nature may be subject to review under EU Directive 93/13/EEC on unfair contract terms, and UK consumer rights regulations, both of which may render caps on business liability to consumers unenforceable where they create a significant imbalance. The FTC Act's prohibition on unfair practices is also potentially relevant. For business users, the cap is more likely enforceable under standard commercial contract principles. (2) GOVERNANCE EXPOSURE: Medium. The $500 floor is relatively low given the commercial significance of the platform for professional creators and businesses, and the 12-month revenue lookback may result in a zero-dollar cap for new or unmonetized creators. This asymmetry, combined with the broad user indemnification clause, creates a structurally one-sided risk allocation. (3) JURISDICTION FLAGS: EU and UK users may have statutory rights to compensation that cannot be contracted away, meaning the cap may not be enforceable in those jurisdictions for certain categories of harm. California's consumer protection statutes may provide additional grounds to challenge the cap in specific circumstances. (4) CONTRACT AND VENDOR IMPLICATIONS: Businesses using YouTube as a revenue-generating channel should factor the $500 liability cap into their business continuity and risk management planning, as contract-based recovery for platform failures is effectively limited. (5) COMPLIANCE CONSIDERATIONS: Legal teams should assess whether this cap is disclosed clearly enough at the point of service agreement to satisfy conspicuousness requirements under applicable state and federal law, and whether the carve-out for applicable law adequately addresses EU and UK consumer rights obligations.

Full compliance analysis

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

Track 1 platform — free Try Watcher free for 14 days

Free: track 1 platform + weekly digest. Watcher: 10 platforms + same-day alerts. No credit card required.

Applicable agencies

  • FTC
    The FTC has authority over unfair consumer contract terms, including liability caps that may be disproportionate to potential consumer harm in consumer-facing service agreements
    File a complaint →
  • State AG
    State attorneys general may evaluate whether a $500 liability cap in a consumer-facing digital services agreement is enforceable or constitutes an unconscionable contract term under state law
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
YouTube Terms of Service
Entity
YouTube Ads
Document last updated
May 5, 2026
Tracking information
First tracked
May 10, 2026
Last verified
May 10, 2026
Record ID
CA-P-009168
Document ID
CA-D-00069
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
1b475bf927679e016f0adbea30f43d0ee9e76e2cb7a1a66ab13f75a1537e1eba
Analysis generated
May 10, 2026 15:25 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: YouTube Ads
Document: YouTube Terms of Service
Record ID: CA-P-009168
Captured: 2026-05-10 15:25:11 UTC
SHA-256: 1b475bf927679e01…
URL: https://conductatlas.com/platform/youtube-ads/youtube-terms-of-service/limitation-of-liability-and-500-cap/
Accessed: May 13, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

Other risks in this policy

Professional Governance Intelligence

Need to monitor specific governance provisions?

Professional includes provision-level monitoring, governance timelines, regulatory mapping, and audit-ready analysis.

Arbitration clauses AI governance Data rights Indemnification Retention policies
Start Professional free trial

Or start with Watcher →

Built from archived source documents, structured governance mappings, and historical version tracking.

Frequently Asked Questions

What does YouTube Ads's Limitation of Liability and $500 Cap clause do?

For most users who do not receive revenue from YouTube, this cap means that even if YouTube causes significant harm such as data loss, account termination, or content removal, the maximum compensation they could seek is $500.

How does this clause affect you?

Users who suffer harm from YouTube's actions, including wrongful account suspension, data loss, or content removal, are contractually limited to recovering at most $500 or prior-year revenue, which may be far below their actual losses as creators or businesses.

Is ConductAtlas affiliated with YouTube Ads?

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