Any dispute you have with FanDuel must be resolved through private arbitration rather than in court, and you cannot join a class action lawsuit against FanDuel. A jury trial is also waived.
This analysis describes what FanDuel'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
This clause removes your ability to use the court system or band together with other users in a class action, which are often the most practical ways consumers enforce their rights against large companies.
Users who experience withheld prizes, wrongful account termination, or other grievances must pursue them individually through arbitration rather than through court litigation or class proceedings, which can make smaller claims economically impractical to pursue.
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 ...
THESE TERMS REQUIRE THE USE OF ARBITRATION (SECTION 12.2) ON AN INDIVIDUAL BASIS TO RESOLVE DISPUTES, RATHER THAN JURY TRIALS OR CLASS ACTIONS, AND ALSO LIMIT THE REMEDIES AVAILABLE TO YOU IN THE EVENT OF A DISPUTE.
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"PLEASE BE AWARE THAT SECTION 15 CONTAINS PROVISIONS GOVERNING HOW TO RESOLVE DISPUTES BETWEEN YOU AND FANDUEL. AMONG OTHER THINGS, SECTION 15 INCLUDES AN AGREEMENT TO ARBITRATE, WHICH REQUIRES, WITH LIMITED EXCEPTIONS, THAT ALL DISPUTES BETWEEN YOU AND US WILL BE RESOLVED BY BINDING AND FINAL ARBITRATION. SECTION 15 ALSO CONTAINS A CLASS ACTION AND JURY TRIAL WAIVER. PLEASE READ SECTION 15 CAREFULLY.— Excerpt from FanDuel's FanDuel Terms of Use
REGULATORY LANDSCAPE: This provision implicates the Federal Arbitration Act, which generally supports the enforceability of pre-dispute arbitration agreements, as well as state consumer protection statutes in California, New Jersey, and other jurisdictions that have at times limited or scrutinized class action waivers in consumer contracts. The FTC has identified mandatory arbitration with class waivers as a consumer protection concern under the FTC Act. Courts in several states have invalidated class waivers in consumer contexts depending on the specific facts and applicable state law. GOVERNANCE EXPOSURE: High. Mandatory pre-dispute arbitration with a class action waiver in a consumer-facing gaming context creates significant exposure if state courts or regulators determine the provision is procedurally or substantively unconscionable. The breadth of the waiver, covering all disputes with limited exceptions, amplifies this risk. JURISDICTION FLAGS: California courts have applied heightened scrutiny to class action waivers in consumer contracts. New Jersey, Massachusetts, and Washington state have also presented enforcement challenges to broadly worded arbitration clauses. The provision may face enforceability questions in any jurisdiction where daily fantasy sports is treated as a consumer financial service. CONTRACT AND VENDOR IMPLICATIONS: B2B agreements with FanDuel that incorporate these Terms by reference should be reviewed to determine whether the arbitration clause applies to commercial counterparties. Indemnification and liability shift provisions in the broader agreement may interact with the arbitration clause in ways that limit upstream vendor exposure assessment. COMPLIANCE CONSIDERATIONS: Legal teams should verify that the 30-day opt-out mechanism is clearly disclosed at account creation, operationally accessible, and documented in a manner that satisfies consumer protection disclosure standards in all active jurisdictions. Consent records for arbitration agreement acceptance should be retained as part of standard contract management practice.
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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.
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This clause removes your ability to use the court system or band together with other users in a class action, which are often the most practical ways consumers enforce their rights against large companies.
Users who experience withheld prizes, wrongful account termination, or other grievances must pursue them individually through arbitration rather than through court litigation or class proceedings, which can make smaller claims economically impractical to pursue.
ConductAtlas has identified this type of provision across 132 platforms. See the full comparison.
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