Stability AI
Weighted across nine legal categories. Lower is worse.
Executive summary
Stability AI’s Terms of Service present significant consumer risks, particularly regarding dispute resolution, liability limitations, and account termination. While the document provides reasonable modification notice periods and preserves small claims court access, it relies on browsewrap acceptance, imposes mandatory individual arbitration with a class-action waiver, and caps liability at a trivial $100 amount including for negligence. Several core consumer-protection categories are entirely absent, reflecting the document’s narrow scope as a corporate website agreement rather than a product or service contract.
Category breakdown
4 of the nine categories are not addressed by this document, so they are left out rather than scored.
Acceptance of Terms & Scope
Contract formation and service boundaries
Relies on browsewrap consent via mere site access rather than explicit clickwrap agreement. Scope is narrowly limited to the corporate website, excluding product or API terms.
Key findings
- Implied consent through site access
- No explicit clickwrap mechanism
- Narrow scope limited to website
Evidence from the document
By accessing or using the Site, you signify that you: (1) have the legal capacity to comply with and agree to comply with these Terms...
Recommendations
- Implement explicit clickwrap 'I Agree' button
- Provide plain-language summary of key obligations
User Accounts
Registration, suspension, and termination
Termination is permitted at the company’s sole discretion without required notice, cure periods, or appeal mechanisms. No provisions address data export or compensation upon closure.
Key findings
- Sole discretion termination
- No notice or cure period
- Lack of data export rights
Evidence from the document
Any violation of these Terms may result in the suspension or termination by us, in our sole discretion, of your access to and use of the Site.
Recommendations
- Add specific violation criteria with notice and cure periods
- Guarantee data export before account closure
Limitation of Liability
Risk allocation and legal protection
Imposes a blanket warranty disclaimer and caps total liability at a trivial $100, explicitly covering negligence and tort claims. Includes a restrictive one-year statute of limitations for all claims.
Key findings
- $100 liability cap
- Excludes negligence and tort liability
- One-year claim filing deadline
- As-is/as-available basis
Evidence from the document
IN NO EVENT WILL STABILITY’S TOTAL LIABILITY TO YOU FOR ALL DAMAGES, LOSSES OR CAUSES OF ACTION EXCEED ONE HUNDRED DOLLARS ($100)... WHETHER BASED ON CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE
Recommendations
- Raise liability cap to reflect actual damages
- Carve out gross negligence and willful misconduct
- Extend claim filing period to statutory minimums
Modification of Terms
How agreements can be changed
Provides a 14-day advance notice period and prohibits retroactive application, but deems continued use as acceptance and allows immediate changes for 'legal reasons'.
Key findings
- 14-day notice period
- Continued use equals acceptance
- Immediate effect loophole for legal changes
Evidence from the document
Changes will not apply retroactively and will become effective no earlier than fourteen (14) calendar days after they are posted... Your continued use of the Site after any change means you agree to the new Terms.
Recommendations
- Require active acknowledgment for material changes
- Remove immediate-effect loophole unless legally mandated
- Archive previous versions with changelog
Governing Law & Disputes
Jurisdiction and conflict resolution
Mandates individual binding arbitration with a class-action and jury trial waiver, while enforcing New York law and venue regardless of consumer domicile. Includes a 30-day opt-out and fee protection for indigent users, but overall severely restricts access to justice.
Key findings
- Mandatory individual arbitration
- Class action and jury waivers
- New York exclusive venue and choice of law
- 30-day opt-out window
Evidence from the document
YOU AND WE AGREE THAT EACH OF US MAY BRING CLAIMS AGAINST THE OTHER ONLY ON AN INDIVIDUAL BASIS AND NOT AS A PLAINTIFF OR CLASS MEMBER... Any arbitration hearings will occur in New York, New York... Choice of Law... internal substantive laws of the State of New York in all respects, without regard for the jurisdiction or forum in which the user is domiciled
Recommendations
- Allow consumers to sue in their home jurisdiction
- Preserve class-action rights or offer meaningful opt-out
- Align choice of law with consumer residence
Ex-TerCo provides automated analysis of legal documents for informational purposes. This is not legal advice. Terms can change at any time.