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Mandatory Arbitration Clause

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Document Record

What it is

The terms require all disputes between users and Faire to be resolved through binding individual arbitration administered under JAMS rules, rather than through litigation in court, with limited exceptions for small claims matters. The clause applies to claims arising from the Terms or the Services and is governed by the Federal Arbitration Act.

This analysis describes what Faire'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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This provision requires disputes to proceed through individual JAMS arbitration rather than court litigation, and the associated class action waiver means users may not aggregate claims with other users. The terms include a thirty-day opt-out window from the date of first acceptance, which is a procedurally significant deadline for users who wish to preserve access to court-based dispute resolution.

Interpretive note: Enforceability of the class action waiver for California-resident users and EU/UK users may depend on jurisdiction-specific consumer or commercial law and applicable unconscionability analysis.

Consumer impact (what this means for users)

Under this clause, disputes with Faire must be submitted to binding individual arbitration under JAMS rules, and the agreement requires users to waive the right to participate in class action proceedings. The agreement states that users have thirty days from first accepting the Terms to opt out of this arbitration requirement in writing.

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
    Send written notice to Faire's legal team at legal@faire.com within thirty days of first accepting the Terms of Service, stating your intent to opt out of the mandatory arbitration clause. Include your account name and contact information in the notice.

Cross-platform context

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▸ View Original Clause Language DOCUMENT RECORD
"
You and Faire agree to resolve any disputes arising out of or relating to these Terms or our Services through binding arbitration, rather than in court, except that you may assert claims in small claims court if your claims qualify. The Federal Arbitration Act and federal arbitration law apply to these Terms. There is no judge or jury in arbitration, and court review of an arbitration award is limited. However, an arbitrator can award on an individual basis the same damages and relief as a court (including injunctive and declaratory relief or statutory damages), and must follow the terms of these Terms of Service as a court would.

Excerpt from Faire's Terms of Service

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

(1) REGULATORY LANDSCAPE: Mandatory arbitration clauses in B2B and consumer-facing agreements engage the Federal Arbitration Act and have been subject to scrutiny under state consumer protection law, particularly in California under the CLRA and applicable unconscionability doctrine. The FTC has indicated ongoing interest in mandatory arbitration clauses in consumer contracts; applicability to business-to-business users such as retail brands may affect how courts analyze enforceability. JAMS is identified as the arbitration administrator. (2) GOVERNANCE EXPOSURE: Medium-High. The clause covers all disputes arising from the Terms or Services, which is a broad scope. The thirty-day opt-out window is a standard but operationally significant feature that procurement and compliance teams must track upon onboarding. (3) JURISDICTION FLAGS: California courts have in certain contexts declined to enforce class action waivers in adhesion contracts where procedural and substantive unconscionability coexist; enforceability for California-resident users may warrant legal review. EU and UK users may have forum rights under applicable consumer or commercial law that limit the clause's practical reach. (4) CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should confirm whether vendor onboarding workflows include a step to evaluate and potentially exercise the thirty-day arbitration opt-out. The clause limits Faire's exposure to individual claims only, which interacts with the $100 liability cap to constrain aggregate recovery per user. (5) COMPLIANCE CONSIDERATIONS: Legal teams should evaluate whether the JAMS arbitration clause conflicts with existing dispute resolution provisions in B2B contracts or platform agreements, and whether the opt-out mechanism needs to be exercised as a standard onboarding step for enterprise accounts.

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Applicable agencies

  • FTC
    The FTC has regulatory interest in mandatory arbitration clauses and class action waivers in consumer-facing and small business platform agreements under its unfair or deceptive practices authority
    File a complaint →
  • State AG
    California's Attorney General enforces state consumer protection law, including scrutiny of arbitration and class action waiver provisions in adhesion contracts under the CLRA and UCL
    File a complaint →

Provision details

Document information
Document
Faire Terms of Service
Entity
Faire
Document last updated
July 5, 2026
Tracking information
First tracked
July 6, 2026
Last verified
July 6, 2026
Record ID
CA-P-013333
Document ID
CA-D-00915
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
c5892984e6fed39ec505398329c40e52589056aa1798302443dd209462b4ff7c
Analysis generated
July 6, 2026 15:31 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Faire
Document: Faire Terms of Service
Record ID: CA-P-013333
Captured: 2026-07-06 15:31:41 UTC
SHA-256: c5892984e6fed39e…
URL: https://conductatlas.com/platform/faire/faire-terms-of-service/provision/CA-P-013333/mandatory-arbitration-clause/
Accessed: July 23, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

Other risks in this policy

Governance intelligence across arbitration, AI governance, data rights, indemnification, and retention
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Frequently Asked Questions

What does Faire's Mandatory Arbitration Clause clause do?

This provision requires disputes to proceed through individual JAMS arbitration rather than court litigation, and the associated class action waiver means users may not aggregate claims with other users. The terms include a thirty-day opt-out window from the date of first acceptance, which is a procedurally significant deadline for users who wish to preserve access to court-based dispute resolution.

How does this clause affect you?

Under this clause, disputes with Faire must be submitted to binding individual arbitration under JAMS rules, and the agreement requires users to waive the right to participate in class action proceedings. The agreement states that users have thirty days from first accepting the Terms to opt out of this arbitration requirement in writing.

Is ConductAtlas affiliated with Faire?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Faire.