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.
How other platforms handle this
If, however, this Class Action Waiver is deemed invalid or unenforceable with respect to a particular Dispute...neither you nor Chegg will be entitled to arbitration of such Dispute.
the arbitration provider, National Arbitration and Mediation ("NAM"), shall not accept or administer any demand for arbitration and shall administratively close any arbitration unless the Party bringing such demand for arbitration can certify in writing that the terms...were fully satisfied.
Neither you nor we may elect arbitration of any claims seeking only individualized relief asserted by you or us in small claims court, so long as the action remains in that court and is not removed or appealed de novo...
"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 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.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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561 arbitration provisions across 197 platforms. ConductAtlas tracks how dispute resolution is being restructured across the internet.
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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 205 platforms. See the full comparison.
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