Microsoft
Microsoft Services Agreement
Microsoft provides a broad suite of consumer software, cloud, gaming, and communication services including Windows, Microsoft 365, Xbox, Skype/Teams, Bing, and Copilot AI products.
Analyzed May 21, 2026
Key findings
Summary
This is a broad, multi-product agreement covering dozens of Microsoft services with standard-to-aggressive corporate terms: extensive data collection (including biometric, location, and health data used for AI training), a broad content license, mandatory arbitration with a class-action waiver, and broad termination/deletion rights with limited refund guarantees. Most provisions are typical of large tech ecosystems, though AI training use of personal data and precise/biometric/health data collection are notable aggravating factors.
Category Breakdown
Microsoft collects extensive categories of data including precise location, biometric data, voice, contacts, and health data, and explicitly uses this data to train AI models.
From: MICROSOFT PRIVACY STATEMENTAs part of our efforts to improve and develop our products, we may use your data to develop and train our AI models.View source document
Data is shared with data brokers, business partners, advertisers, and third parties, including for advertising purposes, with only limited opt-out mechanisms described.
From: MICROSOFT PRIVACY STATEMENTData brokers from which we purchase demographic data and contact information to supplement the data we collect.View source document
Users retain ownership of their content but grant Microsoft a broad worldwide, royalty-free license to use, reproduce, and distribute it to operate and improve the Services.
From: TERMS OF SERVICEyou 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.View source document
Microsoft can suspend or close accounts for inactivity, policy violations, or nonpayment, deleting content after closure with limited retrieval options.
From: TERMS OF SERVICEIf your Microsoft account is closed (whether by you or us), a few things happen. First, your right to use the Microsoft account to access the Services stops immediately.View source document
The agreement requires binding individual arbitration with a class-action waiver, but includes a small claims court carveout and an opt-out mechanism.
From: TERMS OF SERVICEyou 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.View source document
Services renew automatically with disclosed billing terms, but the general refund policy states purchases are final and non-refundable except where required by law.
From: TERMS OF SERVICEUnless otherwise provided by law or by a particular Service offer, all purchases are final and non-refundable.View source document