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.
This analysis describes what AI21 Labs'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
The clause establishes a bilateral dispute resolution framework that channels all disagreements into individual arbitration proceedings, which affects how disputes are adjudicated and the procedural mechanisms available to parties.
The updated terms remove the explicit "Your Opt-Out Rights" button that previously allowed users to opt out of data sales and targeted advertising. In its place, the revised language establishes a general cookie consent framework requiring users to click "Accept" to allow cookies for site navigation, usage analysis, and marketing efforts. Users retain the ability to choose not to allow certain cookie types, but the prior dedicated opt-out mechanism for data sales and targeted advertising is no longer explicitly described in the accessible terms interface. If you wish to control cookie preferences, you can click on the cookie settings to modify consent for different types of cookies; however, strictly necessary cookies cannot be declined as they are required for core website functionality.
View change record →Removal of the explicit class action waiver and binding arbitration requirement represents a significant shift away from mandatory individual arbitration, potentially restoring users' rights to pursue class action litigation and court remedies.
View full change record →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.
How other platforms handle this
You and Teachable agree to resolve any disputes through final and binding arbitration, except as set forth under Exceptions to Agreement to Arbitrate below. You also agree that disputes will only be resolved on an individual basis and not as a class, consolidated, or representative action.
Any dispute arising from or relating to the subject matter of these Terms shall be finally settled by arbitration in San Francisco County, California, in accordance with the Streamlined Arbitration Rules and Procedures of Judicial Arbitration and Mediation Services, Inc. ("JAMS") then in effect, by ...
WHERE PERMITTED UNDER THE APPLICABLE LAW, YOU AND NETFLIX AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. Further, where permitted under the applicable law, unless ...
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"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.— Excerpt from AI21 Labs's AI21 Labs Terms of Use
(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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The clause establishes a bilateral dispute resolution framework that channels all disagreements into individual arbitration proceedings, which affects how disputes are adjudicated and the procedural mechanisms available to parties.
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.
ConductAtlas has identified this type of provision across 1 platforms. See the full comparison.
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