OneDrive

Microsoft scans OneDrive content for policy enforcement and can suspend accounts, risking access to your files. Storage is tied to your Microsoft account and subscription.

🚨 Key things to watch out for

The clauses that could affect you the most. Read these even if you skip everything else.

Liability is capped at just one month's fee (or $10 for free services), so you can never recover meaningful damages no matter what goes wrong.

US users must resolve disputes through binding individual arbitration and waive the right to join any class action.

Loading breakdown…

📋 Every clause, explained

Browse what the terms actually say — filter by severity or by topic.

Topics covered

Show:

Showing 29 clauses

2Your Content3 clauses

⚠️

Broad content license to Microsoft

📄Claims your content

2-A

💬 You keep ownership of your files, but you give Microsoft a broad, free, worldwide license to copy, store, reformat and distribute your content to run and improve the Services. Publicly posted content may even appear in Microsoft's promotional materials.

▶Show original legal text

“you grant to Microsoft a worldwide and royalty-free intellectual property license to use Your Content, for example, to make copies of, retain, transmit, reformat, display, and distribute via communication tools Your Content on the Services.”

⚠️

Shared content usable by others worldwide

🔗Shares with third parties

2-B

💬 Once you share content, other people can freely reuse and redistribute it worldwide with no payment to you. If you don't want that, don't share it through the Services.

▶Show original legal text

“they may be able to, on a worldwide basis, use, save, record, reproduce, broadcast, transmit, share and display Your Content for the purpose that you made Your Content available on the Services without compensating you.”

ℹ️

Data deletion on cancellation but with retention exceptions

🗄️Data retention

2-C

💬 When your service ends, Microsoft deletes or disassociates your data, but may keep it where the law requires. You should keep your own backups.

▶Show original legal text

“we'll delete Data or Your Content associated with your Service or will otherwise disassociate it from you and your Microsoft account (unless we are required by law to keep it, return it, or transfer it to you or a third party identified by you).”

4Using the Services & Support4 clauses

⚠️

Account closed for inactivity

⛔Account termination

4-A

💬 If you don't log in for two years (or one year for Outlook.com and OneDrive specifically), Microsoft can close your account and you could lose access to your stored content.

▶Show original legal text

“you must sign in at least once in a two-year period to keep your Microsoft account... You must sign into your Outlook.com inbox and your OneDrive (separately) at least once in a one-year period, otherwise we will close your Outlook.com inbox and your OneDrive for you.”

🔴

Termination can forfeit content and balances

⛔Account termination

4-B

💬 If Microsoft closes your account for a policy violation, you can permanently lose your purchased content, memberships, and any money/balance tied to the account.

▶Show original legal text

“Closure of your access to a Service or your account may result in forfeiture of content licenses, associated content, memberships, and Microsoft account balances associated with the account.”

⚠️

Immediate account closure for violations

⛔Account termination

4-C

💬 Microsoft can immediately suspend or close your account if it thinks you broke the rules, potentially cutting off access to everything at once.

▶Show original legal text

“This could include limiting access to certain features or Services, stopping providing Services, closing your Microsoft account immediately or blocking delivery of a communication”

⚠️

Employer/domain owner can access your data

🔗Shares with third parties

4-D

💬 If you use a work or school email, that organization can take control of your account and read your files and communications.

▶Show original legal text

“the owner of the domain associated with your email address may be notified of the existence of your Microsoft account and its associated subscriptions, control and administer your account, and access and process your Data, including the contents of your communications and files”

5Using Third-Party Apps and Services1 clause

⚠️

No liability for third-party services

🛡️Limits their liability

5-A

💬 If you use third-party apps through Microsoft's services, you take on all the risk yourself and Microsoft accepts no responsibility for problems that arise.

▶Show original legal text

“You agree to assume all risk and liability arising from your use of these Third-Party Apps and Services and that Microsoft is not responsible for any issues arising out of your use of them.”

6Service Availability1 clause

⚠️

No liability for outages or data loss

🛡️Limits their liability

6-A

💬 If the service goes down and you lose access to or lose your files, Microsoft is not responsible. Keep your own backups.

▶Show original legal text

“all online services suffer occasional disruptions and outages, and Microsoft is not liable for any disruption or loss you may suffer as a result. In the event of an outage, you may not be able to retrieve Your Content or Data that you've stored.”

7Changes to These Terms2 clauses

⚠️

Microsoft can change terms at any time

📝Can change terms anytime

7-A

💬 Microsoft can change these terms whenever it wants. Simply continuing to use the service counts as accepting the new terms; your only alternative is to stop and close your account.

▶Show original legal text

“We may change these Terms at any time, and we'll tell you when we do. Using the Services after the changes become effective means you agree to the new terms.”

ℹ️

Features can be removed without replacement

📌Other

7-B

💬 Microsoft can remove or discontinue features or services, and even things you paid for, without being required to replace them or give you a re-download.

▶Show original legal text

“we have no obligation to provide a re-download or replacement of any material, Digital Goods (defined in section 14.j), or applications previously purchased.”

9Payment Terms5 clauses

⚠️

Automatic recurring subscription charges

🔄Auto-renews

9-A

💬 Subscriptions renew and charge you automatically forever until you actively cancel. You must cancel before the next billing date to avoid another charge.

▶Show original legal text

“you agree that you are authorizing recurring payments, and payments will be made to Microsoft by the method and at the recurring intervals you have agreed to, until the subscription for that Service is terminated by you or by Microsoft. You must cancel your Services before the next billing date to stop being charged”

⚠️

Trials may require auto-renewal

🔄Auto-renews

9-B

💬 Free trials can automatically roll into a paid subscription. If you don't cancel in time you will be charged.

▶Show original legal text

“you may be required to cancel the trial Service(s) within the timeframe communicated to you... For certain trial-period offers, we may require auto-renewal to be turned on.”

⚠️

Mostly non-refundable purchases

📌Other

9-C

💬 Purchases are generally final and non-refundable, and you must report billing errors within 90 days or lose the right to a refund.

▶Show original legal text

“Unless otherwise provided by law or by a particular Service offer, all purchases are final and non-refundable... No refunds will be given for any charges more than 90 days old.”

⚠️

Chargeback triggers instant cancellation

⛔Account termination

9-D

💬 If you dispute a charge with your bank, Microsoft can immediately cancel your service and take back any content you got in exchange for that payment.

▶Show original legal text

“If you initiate a chargeback or reversal with your bank for your payment of Services, we will deem you to have canceled... and you authorize us to immediately cancel your service and/or revoke any content that was provided to you”

ℹ️

Price changes with 15 days notice

📝Can change terms anytime

9-E

💬 Microsoft can raise subscription prices with at least 15 days notice. If you don't agree, you must cancel before the change takes effect.

▶Show original legal text

“We may change the price of the Services at any time and if you have a recurring purchase, we will notify you by email, or other reasonable manner, at least 15 days before the price change.”

11Choice of Law and Jurisdiction1 clause

ℹ️

Disputes go to King County, Washington

📍Jurisdiction

11-A

💬 Any court case not sent to arbitration must be filed in King County, Washington, which could be inconvenient and costly if you live elsewhere.

▶Show original legal text

“You and we irrevocably consent to the exclusive jurisdiction and venue of the state or federal courts in King County, Washington, for all disputes arising out of or relating to these Terms or the Services that are not heard in arbitration or small claims court.”

12Warranties1 clause

⚠️

Services provided 'as is' with no warranties

🛡️Limits their liability

12-A

💬 Microsoft makes no promises the service will work, be accurate, secure, or error-free. You use it entirely at your own risk.

▶Show original legal text

“WE PROVIDE THE SERVICES ON AN "AS IS" BASIS "WITH ALL FAULTS" AND "AS AVAILABLE." YOU BEAR THE ENTIRE RISK OF USING THE SERVICES.”

13Limitation of Liability1 clause

🔴

Damages capped at one month's fee or $10

🛡️Limits their liability

13-A

💬 No matter how much harm you suffer, the most you can recover is one month's fee (or $10 for free services). You give up all rights to any larger or indirect damages.

▶Show original legal text

“your exclusive remedy is to recover, from Microsoft... direct damages up to an amount equal to your Services fee for the month during which the loss or breach occurred (or up to $10.00 if the Services are free). You can't recover any other damages or losses, including direct, consequential, lost profits, special, indirect, incidental, or punitive.”

14Service-Specific Terms6 clauses

⚠️

Very broad Xbox content license

📄Claims your content

14-A

💬 For Xbox, you give Microsoft and its partners a free worldwide right to use, modify and share your content and profile info without compensation.

▶Show original legal text

“you grant to Microsoft, its affiliates and sublicensees a free and worldwide right to use, modify, reproduce, distribute, broadcast, share and display Your Content or your name, gamertag, motto, or avatar that you posted for any Xbox Services.”

⚠️

Bing Places license with sublicensing

📄Claims your content

14-B

💬 If you submit data to Bing Places, Microsoft can use, modify and pass it on to third parties for free.

▶Show original legal text

“you grant Microsoft a worldwide, royalty-free license to use, reproduce, save, modify, aggregate, promote, transmit, display, and distribute your Data and Your Content (including intellectual property rights in your Data and Your Content), and sub-license any or all of the foregoing rights to third parties.”

⚠️

Virtual goods have no cash value and can be eliminated

📌Other

14-C

💬 Any in-game currency or virtual items you buy can be changed or removed by Microsoft at any time, and never have cash value.

▶Show original legal text

“Microsoft may at any time regulate, control, modify and/or eliminate the game currency and/or virtual goods associated with any one or more Xbox games or apps as it sees fit in its sole discretion.”

⚠️

Skype Credit expires and is lost on account closure

📌Other

14-D

💬 Unused Skype Credit goes inactive after 180 days and is permanently lost if your account is closed.

▶Show original legal text

“If you do not use your Skype Credit for a period of 180 days, Skype will place your Skype Credit on inactive status... If your Microsoft account is closed, for any reason, any unused Skype Credit associated with your Microsoft account will be lost and cannot be retrieved.”

⚠️

AI inputs and outputs stored for monitoring

🤖AI training on your data

14-E

💬 When you use Microsoft's AI features, everything you type in and everything the AI produces is stored and reviewed by Microsoft to police misuse.

▶Show original legal text

“Microsoft will process and store your inputs to the service as well as output from the service, for purposes of monitoring for and preventing abusive or harmful uses or outputs of the service.”

ℹ️

Feedback fully assigned to Microsoft

📄Claims your content

14-F

💬 Any suggestion or feedback you give Microsoft becomes theirs to use and profit from freely, with no payment to you.

▶Show original legal text

“you give to Microsoft, without charge, royalties or other obligation to you, the right to make, have made, create derivative works, use, share and commercialize your Feedback in any way and for any purpose.”

15Binding Arbitration and Class Action Waiver2 clauses

🔴

Mandatory binding arbitration

⚖️Forced arbitration

15-A

💬 For US users, most disputes must go to private arbitration instead of court. You give up your right to a judge or jury trial.

▶Show original legal text

“you and we agree to binding individual arbitration before the American Arbitration Association ("AAA") under the Federal Arbitration Act ("FAA"), and not to sue in court in front of a judge or jury.”

🔴

Class action waiver

🚫No class action

15-B

💬 You cannot join with other customers in a class action or group lawsuit. Each person must pursue their own individual claim, which makes small claims impractical to pursue.

▶Show original legal text

“Class action lawsuits, class-wide arbitrations, private attorney-general actions, requests for public injunctions, and any other proceeding or request for relief where someone acts in a representative capacity aren't allowed.”

16Miscellaneous1 clause

ℹ️

Microsoft can assign the agreement freely

📝Can change terms anytime

16-A

💬 Microsoft can transfer this agreement to another company without telling you, but you cannot transfer your rights to anyone.

▶Show original legal text

“We may assign these Terms, in whole or in part, at any time without notice to you. You may not assign your rights or obligations under these Terms”

MRMicrosoft Rewards1 clause

⚠️

Rewards points forfeited on inactivity or cancellation

📌Other

MR-A

💬 Rewards points expire after 12 months of inactivity and are lost entirely if you cancel or don't log in, and they never have cash value.

▶Show original legal text

“Unredeemed Points associated with your Rewards Account expire if you do not earn or redeem any Points in your Rewards Account for 12 consecutive months... Your Rewards Account may be cancelled (and your Points forfeited) if you do not log in to your Microsoft account for 12 consecutive months.”

OneDrive terms of service, explained in plain English — TOSTLDR