If you have a problem with Afterpay, you cannot take them to court or join a group lawsuit. Instead, your dispute must go through a private arbitration process, though small claims court is an exception.
This analysis describes what Afterpay'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
Mandatory arbitration and class action waivers significantly limit consumers' practical ability to challenge Afterpay's practices, particularly for smaller individual harms that would only be viable as collective claims.
This provision removes your right to sue Afterpay in court and prevents you from joining others in a class action lawsuit, which is often the only practical way to challenge widespread but individually small harms from a financial services company.
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...
"This Agreement provides that all Disputes (as defined in Section 13 ("Dispute Resolution") below) between you and us will be resolved by BINDING ARBITRATION. YOU AGREE TO GIVE UP YOUR RIGHT TO GO TO COURT to assert or defend your rights under this Agreement, except for matters that may be taken to small claims court. Your rights will be determined by a NEUTRAL ARBITRATOR and NOT a judge or jury, and your claims cannot be brought as a class action. YOU HAVE A RIGHT TO OPT OUT OF THE BINDING ARBITRATION AND CLASS ACTION WAIVER PROVISIONS AS DESCRIBED in Section 13 ("Dispute Resolution") below.Excerpt from Afterpay's Terms of Service
(1) REGULATORY LANDSCAPE: Mandatory arbitration clauses in consumer financial services contracts are subject to ongoing CFPB rulemaking and regulatory scrutiny; the CFPB has previously issued rules limiting such clauses in consumer financial products, and enforcement …
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Search "[your state] attorney general consumer complaint" to find your state's direct complaint form
Coinbase's User Agreement includes a mandatory arbitration clause that most users may not have reviewed. Here is what the clause states and how the opt-out process works.
561 arbitration provisions across 197 platforms. ConductAtlas tracks how dispute resolution is being restructured across the internet.
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Mandatory arbitration and class action waivers significantly limit consumers' practical ability to challenge Afterpay's practices, particularly for smaller individual harms that would only be viable as collective claims.
This provision removes your right to sue Afterpay in court and prevents you from joining others in a class action lawsuit, which is often the only practical way to challenge widespread but individually small harms from a financial services company.
ConductAtlas has identified this type of provision across 205 platforms. See the full comparison.
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