If you have a dispute with Affirm, you must resolve it through private arbitration rather than going to court, and you give up your right to join a class action lawsuit against Affirm.
This analysis describes what Affirm's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
Class actions allow many consumers to collectively challenge a company's practices; by waiving this right, each consumer must individually pursue arbitration, which is often more burdensome and costly for small-dollar disputes typical in buy-now-pay-later lending.
This provision means that if Affirm charges you incorrectly or engages in a practice you believe is unlawful, you cannot join other affected customers in a class action lawsuit and must instead pursue your claim alone through a private arbitration process.
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YOU AND UNITY AGREE THAT ANY DISPUTE, CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THESE TERMS OR THE BREACH, TERMINATION, ENFORCEMENT, INTERPRETATION OR VALIDITY THEREOF OR THE USE OF THE SERVICES (COLLECTIVELY, "DISPUTES") WILL BE SETTLED BY BINDING ARBITRATION, EXCEPT THAT EACH PARTY RETAIN...
Any Dispute will be determined in English by final, binding arbitration according to the region-specific processes below. Judgment on any award issued through the arbitration process in this Section J.2 (Arbitration) may be entered in any court having jurisdiction. EACH PARTY AGREES THEY ARE WAIVING...
You and Stripe agree to resolve any disputes, controversies, or claims arising out of or relating to this agreement or the Services through binding individual arbitration instead of in court, except that either party may bring claims in small claims court if they qualify. There will be no right or a...
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"YOU AND AFFIRM AGREE THAT ANY DISPUTE, CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THESE TERMS OR THE BREACH, TERMINATION, ENFORCEMENT, INTERPRETATION OR VALIDITY THEREOF OR THE USE OF THE SERVICES (COLLECTIVELY, 'DISPUTES') WILL BE SETTLED BY BINDING ARBITRATION, EXCEPT THAT EACH PARTY RETAINS THE RIGHT TO SEEK INJUNCTIVE OR OTHER EQUITABLE RELIEF IN A COURT OF COMPETENT JURISDICTION TO PREVENT THE ACTUAL OR THREATENED INFRINGEMENT, MISAPPROPRIATION OR VIOLATION OF A PARTY'S COPYRIGHTS, TRADEMARKS, TRADE SECRETS, PATENTS, OR OTHER INTELLECTUAL PROPERTY RIGHTS. YOU ACKNOWLEDGE AND AGREE THAT YOU AND AFFIRM ARE EACH WAIVING THE RIGHT TO A TRIAL BY JURY OR TO PARTICIPATE AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS ACTION OR REPRESENTATIVE PROCEEDING.— Excerpt from Affirm's Affirm Terms of Service
REGULATORY LANDSCAPE: This provision engages the CFPB's longstanding focus on arbitration clauses in consumer financial contracts under the Consumer Financial Protection Act. The CFPB finalized a rule in 2017 limiting class action waivers in consumer financial arbitration agreements, though Congress voided that rule under the Congressional Review Act; the regulatory posture on this issue remains active and future rulemaking is possible. The FTC Act's unfair and deceptive practices framework may also be relevant if the arbitration process is structured in a way that functionally denies consumers meaningful dispute resolution. State-level public policy defenses in California and other jurisdictions have been used to challenge class action waivers, though Federal Arbitration Act preemption significantly limits these challenges. GOVERNANCE EXPOSURE: High. Mandatory arbitration with class action waiver in consumer financial services is a persistent regulatory and litigation risk area. While the clause is common in the industry, its enforceability is subject to ongoing legal challenge, and the CFPB retains supervisory authority to examine whether arbitration procedures in practice are fair and accessible to consumers. JURISDICTION FLAGS: California courts have historically scrutinized class action waivers in consumer contracts for unconscionability, though FAA preemption limits state-level invalidation in most circumstances. New Jersey and other states have active consumer protection litigation environments where such clauses attract scrutiny. For consumers with small-dollar disputes, the practical cost of individual arbitration may render the process inaccessible, which some regulators treat as a functional denial of rights. CONTRACT AND VENDOR IMPLICATIONS: Merchant partners integrating Affirm at checkout should be aware that consumer disputes arising from Affirm-financed transactions will be channeled through Affirm's arbitration process, not through the merchant's dispute resolution framework. This may affect how merchants structure their own terms regarding Affirm-facilitated purchases and how they handle consumer complaints. COMPLIANCE CONSIDERATIONS: Compliance teams should confirm that the arbitration opt-out mechanism is clearly disclosed during onboarding and that the opt-out deadline and method are operationally functional. Legal teams should monitor CFPB rulemaking activity on arbitration and assess whether any future rule would require amendment of these terms. Documentation of consumer consent to arbitration should be retained for potential regulatory examination.
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Class actions allow many consumers to collectively challenge a company's practices; by waiving this right, each consumer must individually pursue arbitration, which is often more burdensome and costly for small-dollar disputes typical in buy-now-pay-later lending.
This provision means that if Affirm charges you incorrectly or engages in a practice you believe is unlawful, you cannot join other affected customers in a class action lawsuit and must instead pursue your claim alone through a private arbitration process.
ConductAtlas has identified this type of provision across 113 platforms. See the full comparison.
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