What can I do about this clause?

{'method': 'EMAIL', 'recipient': 'legal@ai21.com', 'difficulty': 'MODERATE', 'action_type': 'OPT_OUT_ARBITRATION', 'instructions': "If AI21's Terms provide an arbitration opt-out window (typically 30 days from account creation or Terms update), send a written opt-out notice to legal@ai21.com stating your name, account email, and intention to opt out of mandatory arbitration. Keep a copy of your email for your records.", 'deadline_days': 30, 'deadline_hours': None}

Which regulatory agencies enforce this type of clause?

{'agency': 'FTC', 'reason': 'The FTC has authority to challenge mandatory arbitration and class action waiver clauses as unfair or deceptive practices under FTC Act Section 5, particularly in consumer contexts.', 'complaint_url': 'https://reportfraud.ftc.gov/'}, {'agency': 'State_AG', 'reason': 'State Attorneys General, particularly in California and New York, have actively challenged class action waivers in consumer contracts as unconscionable or violating state consumer protection statutes.', 'complaint_url': 'https://www.naag.org/find-my-ag/'}

What is the severity of this clause?

ConductAtlas classifies this Class Action Waiver and Dispute Resolution clause as high severity. Severity reflects the magnitude of rights affected, the breadth of users impacted, and the degree of discretion the platform retains.

Class Action Waiver and Dispute Resolution — AI21 Labs

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What it is

You give up your right to sue AI21 as part of a group lawsuit (class action) and agree to resolve disputes privately through arbitration instead of in court.

Consumer impact (what this means for users)

You cannot join with other affected users to sue AI21 in a class action, and you must pursue any claims through private arbitration, which is generally more expensive and less favorable for individual consumers with small-value claims.

What you can do

⚠️ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.

Opt Out of Arbitration
Within 30 days
If AI21's Terms provide an arbitration opt-out window (typically 30 days from account creation or Terms update), send a written opt-out notice to legal@ai21.com stating your name, account email, and intention to opt out of mandatory arbitration. Keep a copy of your email for your records.

Cross-platform context

See how other platforms handle Class Action Waiver and Dispute Resolution and similar clauses.

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Why it matters (compliance & risk perspective)

Class action waivers combined with mandatory arbitration clauses significantly limit users' ability to seek collective redress for widespread harms — such as a large-scale data breach or systemic service failure — and typically favor the company over individual claimants.

View original clause language

You agree to resolve any disputes with AI21 on an individual basis and waive any right to bring or participate in a class action lawsuit or class-wide arbitration. Any disputes shall be resolved through binding arbitration rather than in court, except as otherwise required by applicable law.

Institutional analysis (Compliance & legal intelligence)

(1) REGULATORY FRAMEWORK: Mandatory arbitration clauses and class action waivers are governed by the Federal Arbitration Act (FAA) in the U.S. and have been repeatedly scrutinized by the CFPB and FTC. The CFPB issued a rule in 2017 restricting class action waivers in financial contracts (vacated by Congress), indicating ongoing regulatory concern. EU Directive 2013/11/EU on Alternative Dispute Resolution and the Consumer Rights Directive limit the enforceability of mandatory arbitration against EU consumers. California courts have struck down class action waivers that are unconscionable under California Civil Code. (2)

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Applicable agencies

FTC

The FTC has authority to challenge mandatory arbitration and class action waiver clauses as unfair or deceptive practices under FTC Act Section 5, particularly in consumer contexts.
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State AG

State Attorneys General, particularly in California and New York, have actively challenged class action waivers in consumer contracts as unconscionable or violating state consumer protection statutes.
File a complaint →

Provision details

Document information

Document

AI21 Labs Terms of Use

Entity

AI21 Labs

Document last updated

April 29, 2026

Tracking information

First tracked

April 30, 2026

Last verified

April 30, 2026

Record ID

CA-P-004123

Document ID

CA-D-00461

Evidence Provenance

Source URL

https://www.ai21.com/terms-of-use

Wayback Machine

View archived versions →

SHA-256

200410fbfe8d45547f3fd75da4be775c9976bd30375ad7c5fc3b502d2ae35721

Verified

✓ Snapshot stored ✓ Change verified

How to Cite

ConductAtlas Policy Archive
Entity: AI21 Labs | Document: AI21 Labs Terms of Use | Record: CA-P-004123
Captured: 2026-04-30 06:20:21 UTC | SHA-256: 200410fbfe8d4554…
URL: https://conductatlas.com/platform/ai21-labs/ai21-labs-terms-of-use/class-action-waiver-and-dispute-resolution/
Accessed: May 2, 2026

Classification

Severity

High

Class Action Waiver and Dispute Resolution