Beyond the Click: Your Guide to ChatGPT Legal Terms
Learn how OpenAI’s terms and conditions may impact your ChatGPT & DALL-E experience

If you have ever found yourself scrolling through the terms and conditions of a service like OpenAI’s (the “Terms”), you might have felt a little overwhelmed. We get it — legal texts can be as dense as a foggy San Francisco morning.
As a result, you may have wondered what exactly you are agreeing to when you click ‘I accept’ on a website… You are not alone. Many of us skim through these documents or never read them at all. But knowing what these terms mean is as important as knowing the rules of a game you are about to play. Let’s take a look at these often overlooked details together in a friendly, easy-to-digest way.
So, our goal for today: to clear the fog and make OpenAI’s Terms as easy to understand as your favorite novel 😉

OpenAI’s Services and Your Agreement
When you click “I agree” and start using OpenAI’s services, including ChatGPT, DALL-E and their other individual offerings (the “Services”), you are entering into a formal contract between you and OpenAI (OpenAI, L.L.C., a Delaware limited liability company). This agreement sets the stage for what you can expect from the Services and outlines the guidelines for use.
OpenAI’s Services are designed with a broad audience in mind, but they do require users to be at least 13 years old. For those under 18, parental or guardian consent is necessary. This ensures that younger users have the appropriate oversight for their online interactions.
Using the Services
What is permitted (it’s a very short list)
- You can access and use the Services, provided you stick to the terms set out.
What’s Not Permitted (a long list)
- No Illegal or Harmful Use. It’s not okay to use the Services for anything that’s illegal, harmful, or abusive.
- Don’t Alter or Resell the Services. Modifying, copying, leasing, selling, or distributing any part of the Services is off-limits.
- No Tampering with the Tech. Trying to reverse engineer or decode the source code, or taking data without permission, is prohibited.
- Honest Representation. If something wasn’t made by a human, it shouldn’t be represented as such.
- Avoid Disrupting the Services. It is important not to bypass any set limits, safety features, or protections.
- No Competing Creations. Using any output from the Services to create competing products is not allowed.
Use of Third-Party Services
Please note that the Services may include third party software, products or services. These have their own terms and conditions, and the responsibility for them lies with their respective providers. So, basically, endless.
It’s All About Content
Your participation
When you use the Services, you may provide input (such as data or information) and in return you will receive output based on that input. Both your input and the output you receive are referred to as “Content”.
Your responsibility
It is your responsibility to make sure that this Content does not violate any laws or the Terms. You must have the necessary rights or permissions to provide any input.
Who Owns the Content
You retain ownership of your input and you also own the output you receive from the Services. Any rights to the output that the service provider may have are transferred to you by OpenAI. But keep in mind, because of the way AI works, the output you receive may not be completely unique. Other users may receive similar output. Therefore, the rights granted to you do not apply to output received by other users or third parties.
How OpenAI uses your content
Your content may be used to improve, maintain and develop the Services. This includes ensuring security and compliance with laws and regulations. However, if you do not want your content to be used to train the Service’s models, you can opt-out by following specific instructions. Please note that opting out may affect how well the Services work for you.
About the accuracy
AI and machine learning are evolving fields. The results you receive may not always be completely accurate or reflect reality. Therefore, do not rely on this output as your only source of information. Always check its accuracy and suitability for your purpose. Avoid using the output for decisions that could significantly affect someone’s life, such as credit, employment, housing, legal matters, etc. If you receive output that is incomplete, inaccurate or offensive, remember that it does not reflect the views of the service provider (OpenAI is limiting its liability).

OpenAI’s Intellectual Property Rights
The service provider and their partner organizations hold all the ownership rights to the Services. This includes everything that makes up the service. However, if you want to use the service provider’s name or logo, you need to follow their specific Brand Guidelines. This means that while you can use the Services, the underlying rights to the Service itself belong to OpenAI, and any use of their branding should align with their set rules.
What to Expect from the Services
As-Is Basis
The Services are provided “as is” (no warranties). This means that the service provider makes no promises about the quality of the Services, their suitability for a particular purpose or their non-infringement of the rights of third parties. They also do not guarantee that use of the Services will always be pleasant or uninterrupted.
OpenAI does not promise that the Services will be uninterrupted, always accurate or error-free, or that your content will always be secure and unaltered.
Use at Your Own Risk
Your use of the Services is entirely at your own risk. This means that you should not rely entirely on the output of the Services as your sole source of information or as a substitute for professional advice.
Limits on OpenAI’s Liability
OpenAI is not responsible for indirect losses. This includes things like loss of profit, goodwill, ability to use the Services or loss of data. This applies even if they have been warned that such damage could happen.
Cap on Liability
If something goes wrong and it is related to the Services you paid for, the most the service provider has to pay you is either the amount you paid for the Services in the 12 months before the problem occurred, or $100 — whichever is greater.
Different rules apply in different places
In some countries or states, the law does not allow certain types of disclaimers or limitations on damages. If that is the case where you live, some or all of these limitations may not apply to you and you may have additional rights.
When You Have a Paid Account
If you have a subscription, the payment method you provided will be charged automatically at each renewal period until you decide to cancel. You are responsible for any taxes. The service provider will add tax to your bill if necessary. If your payment does not go through, they might reduce your account’s features or stop your access until they receive the payment.
Cancelation
You are free to cancel your subscription whenever you want. Generally, payments are not refunded, but there might be exceptions depending on the law in your state. The Terms do not override any local regulations that might give you additional rights regarding cancellation.
Price Changes
OpenAI may change its prices from time to time. If prices go up, you will be given at least 30 days’ notice. The new prices will apply from your next renewal period, giving you the chance to cancel if you do not agree with the increase.

Termination or suspension of the Services
Termination by you
You may choose to stop using the Services at any time.
Termination by OpenAI
When they can stop your access:
- Breaking the rules. If you don’t follow the Terms or the Usage Policies.
- Legal reasons. When it’s necessary to comply with the law.
- Safety and risk concerns. If your use of the Services could cause harm or risk to the service provider, other users or anyone else.
- Inactivity. They may also terminate your account if it has not been used for over a year and you do not have a paid subscription. But they’ll let you know in advance if this is going to happen.
If you disagree with a suspension or termination
If you think your account has been wrongly suspended or terminated, you can appeal by contacting their support team.
How Disputes are Handled
Mandatory Arbitration
If there is a disagreement about the Terms or Services, you and OpenAI agree to resolve it through arbitration, which is a private and binding process. You have the option to opt out of arbitration within 30 days of creating your account or after these arbitration terms are updated.
First steps
Before taking formal legal action, both parties agree to try to resolve the issue informally. You can do this by sending a notice through a designated form, and the service provider will respond to the email linked to your account.
Timeframe
If the issue is not resolved within 60 days, either party can request arbitration. During this time, either party may also agree to attend a settlement conference.
Arbitration Organisation
Arbitration is conducted by an organization called National Arbitration and Mediation (NAM).
Procedure
Arbitrations are usually conducted by videoconference. The arbitrator will be a retired judge or an attorney licensed to practice law in California.
Powers of the arbitrator
The arbitrator has the power to decide the outcome of the dispute. Certain types of disputes about the arbitration process itself may be heard by state or federal courts in San Francisco, California.
Exceptions to arbitration
Small individual claims in small claims court and requests for emergency court orders (such as to stop illegal use of the Services) do not have to go through arbitration.
Only individual disputes
You can not join a class action or arbitration against the service provider. Each dispute must be handled individually. If 25 or more similar cases are filed within 90 days, they may be grouped together for arbitration.

Miscellaneous
Your rights cannot be transferred
You cannot transfer your rights or obligations under the Terms to anyone else. Any attempt to do so won’t count. However, OpenAI may at any time assign its rights or obligations under the Services to an affiliate or successor.
Changes to the Terms and Services
Expect regular updates to both the Services and the Terms. This may be due to changes in the law, security requirements, unexpected events, regular development or new technology.
Notification of major changes
If there is a major change that negatively affects you, you will be notified at least 30 days in advance by email or a notification in the Services. Smaller changes may just be posted on their website. If you do not agree to the new terms, you should stop using the Services.
Comply with trade regulations
You must comply with all relevant trade laws, including sanctions and export controls. Don’t use the Services in ways or places that are embargoed or with people or entities restricted under trade laws. Also, don’t use the Services for prohibited purposes or contain sensitive material without the necessary approvals.
Governing Law and Remedies
The Terms are governed by the laws of California (the U.S.) excluding its conflict of laws principles. Any legal claims related to the Terms should be brought in the courts of San Francisco, California, except as provided in the Dispute Resolution section (see the section above - “How Disputes are Handled”).
Disclaimer: The information provided in this article is for informational and educational purposes only and is not intended to serve as legal advice or as a substitute for legal counsel. While efforts have been made to ensure the accuracy and completeness of the content herein, it is important to note that legal principles and regulations can vary significantly based on jurisdiction and specific circumstances. Therefore, this article should not be used as a definitive legal resource or as a basis for making legal decisions. Readers are strongly advised to consult with a qualified attorney for advice on legal issues or matters, as each individual case may require detailed and personalized legal analysis.
Reliance solely on the information provided in this article without seeking professional advice from an attorney may lead to unintended legal consequences or misinterpretation. The author or publisher of this article do not accept responsibility for any potential errors or omissions, nor will they be responsible for any losses, injuries, or damages arising from its display or use. The information provided here does not create an attorney-client relationship between the reader and the author or publisher.
