AI training
- Severity 5
"If you do not want us to use your Content to train our models, you can opt out by following the instructions in this article. Please note that in some cases this may limit the ability of our Services to better address your specific use case."
You can opt out of OpenAI using your content to train their models, but this might limit how well the Services work for your specific needs.
Choosing to opt out may reduce the effectiveness of the AI for your unique use cases.
⚖️Matches The New York Times Co. v. OpenAI & Microsoft (2023) - Severity 5
"We may use Content to provide, maintain, develop, and improve our Services, comply with applicable law, enforce our terms and policies, and keep our Services safe."
OpenAI uses your content to provide, maintain, develop, and improve their Services, and to keep them safe.
Your data is used to train OpenAI's models, which could include sensitive information.
⚖️Matches The New York Times Co. v. OpenAI & Microsoft (2023)
Auto-renewal
- Severity 3
"For paid subscriptions, we will automatically charge your payment method on each agreed-upon periodic renewal until you cancel."
OpenAI automatically charges your payment method for paid subscriptions until you cancel.
You will be billed automatically for renewals unless you actively cancel, potentially leading to unwanted charges.
⚖️Matches FTC v. Amazon (Iliad Flow / Prime Enrollment) (2023)
Price hikes
- Severity 3
"We may change our prices from time to time. If we increase our subscription prices, we will give you at least 30 days’ notice and any price increase will take effect on your next renewal so that you can cancel if you do not agree to the price increase."
OpenAI can change prices and will notify you at least 30 days before the next renewal, allowing you to cancel if you disagree.
You could be charged a higher price upon renewal if you don't cancel within the 30-day notice period.
⚖️Matches Netflix Price Hike Class Action (2023)
Data residency
No flags in this category.
Termination friction
- Severity 3
"If you believe we have suspended or terminated your account in error, you can file an appeal with us by contacting our Support team."
You can appeal to OpenAI's Support team if you believe your account was suspended or terminated by mistake.
You have a recourse to contest account suspension or termination if you believe it was an error.
⚖️Matches PayPal Account Hold / Freeze Class Action — settled for $4M (2021) - Severity 3
"We reserve the right to suspend or terminate your access to our Services or delete your account if we determine:You breached these Terms or our Usage Policies.We must do so to comply with the law.Your use of our Services could cause risk or harm to OpenAI, our users, or anyone else."
OpenAI can suspend or terminate your account if you break their terms, if they need to comply with the law, or if your use poses a risk.
Your access can be revoked without warning if OpenAI deems your usage violates their policies or poses a risk.
⚖️Matches PayPal Account Hold / Freeze Class Action — settled for $4M (2021) - Severity 3
"We may decide to discontinue our Services, but if we do, we will give you advance notice and a refund for any prepaid, unused Services."
OpenAI may discontinue their Services and will provide advance notice and a refund for any prepaid, unused Services.
OpenAI can stop offering a service you pay for, but you should receive a refund for the unused portion.
⚖️Matches Adobe Early Termination Fee Class Action (2024) - Severity 2
"We also may terminate your account if it has been inactive for over a year and you do not have a paid account. If we do, we will provide you with advance notice."
OpenAI may terminate your account if it's inactive for over a year and you don't have a paid account, after giving you notice.
Your account could be deleted due to inactivity, potentially leading to data loss if not a paid user.
Liability caps
- Severity 4
"NEITHER WE NOR ANY OF OUR AFFILIATES OR LICENSORS WILL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, OR DATA OR OTHER LOSSES, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES."
OpenAI and its affiliates are not liable for any indirect, incidental, special, consequential, or exemplary damages, including lost profits or data.
You cannot recover damages for indirect losses, even if OpenAI's service causes them.
⚖️Matches Yahoo! Customer Data Security Breach Settlement — settled for $118M (2019) - Severity 4
"OUR AGGREGATE LIABILITY UNDER THESE TERMS WILL NOT EXCEED THE GREATER OF THE AMOUNT YOU PAID FOR THE SERVICE THAT GAVE RISE TO THE CLAIM DURING THE 12 MONTHS BEFORE THE LIABILITY AROSE OR ONE HUNDRED DOLLARS ($100)."
OpenAI's total liability is capped at the greater of what you paid in the last 12 months or $100.
If OpenAI causes significant financial harm, your compensation is severely limited to a small amount.
⚖️Matches Yahoo! Customer Data Security Breach Settlement — settled for $118M (2019)
Indemnification
- Severity 3
"If you are a business or organization, to the extent permitted by law, you will indemnify and hold harmless us, our affiliates, and our personnel, from and against any costs, losses, liabilities, and expenses (including attorneys’ fees) from third party claims arising out of or relating to your use of the Services and Content or any violation of these Terms."
As a business user, you must defend OpenAI and its personnel against third-party claims arising from your use of their Services or violation of terms.
You are responsible for legal costs and damages if your use of OpenAI's service leads to a lawsuit against them.
⚖️Matches T-Mobile Data Breach Settlement — settled for $350M (2022)
Silent term changes
- Severity 4
"We will give you at least 30 days advance notice of changes to these Terms that materially adversely impact you either via email or an in-product notification. All other changes will be effective as soon as we post them to our website. If you do not agree to the changes, you must stop using our Services."
OpenAI will notify you 30 days in advance about significant changes to the Terms that negatively impact you; other changes are effective immediately.
You might be subject to new terms with little notice, and continuing to use the service means you accept them.
⚖️Matches Italian DPA (Garante) v. WhatsApp — settled for $6M (2022) - Severity 4
"We may update these Terms or our Services accordingly from time to time. For example, we may make changes to these Terms or the Services due to:Changes to the law or regulatory requirements.Security or safety reasons.Circumstances beyond our reasonable control.Changes we make in the usual course of developing our Services.To adapt to new technologies."
OpenAI can update its Terms or Services for various reasons, including legal changes, security, or new technologies.
OpenAI can change the rules of their service at any time, potentially affecting how you use it.
⚖️Matches Italian DPA (Garante) v. WhatsApp — settled for $6M (2022)
Better alternatives
Higher-rated vendors in AI / ML that may be safer than OpenAI.
Ask the lawyer
OpenAI · grade D
Hey 👋
I've read every word of OpenAI's ToS so you don't have to. Ask me anything — I'll quote the actual contract.
Try asking
Recent changes detected
Dec 11, 2024
OpenAI removed the 30-day arbitration opt-out, removed the $25K carve-out for court actions, and added an explicit jury-trial waiver. Disputes of any size now go to forced arbitration with no escape hatch.
Any customer who experiences a material harm from ChatGPT or the API — they have no path to court regardless of damages, and cannot join class actions if many users are affected by the same issue.