If you have a dispute with Figma, you must resolve it through private arbitration rather than a lawsuit, and you cannot join a class action lawsuit with other users. The only exceptions are small claims court and emergency intellectual property matters.
This analysis describes what Figma'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 right to take Figma to court and prevents you from joining with other affected users in a group lawsuit, which can significantly reduce your practical ability to seek redress for lower-value claims.
Interpretive note: Enforceability varies by jurisdiction; EU, UK, and some US state consumer protection laws may limit the applicability of mandatory arbitration and class action waivers for individual consumers.
The removal of the Subprocessors list link makes it less convenient for users, particularly enterprise and EU-based customers who rely on this information for data protection compliance, to verify which third parties Figma engages to process their data. While the subprocessor information may still exist on Figma's website, removing the direct link from the Terms of Service reduces accessibility and transparency. Enterprise customers and those subject to GDPR may need to contact Figma directly to access current subprocessor information.
View change record →Previous version had no excerpt provided; current version now includes detailed text showing binding arbitration requirement with small claims court and injunctive relief carve-outs.
View full change record →This provision means that if Figma harms you in some way, your only formal legal remedy is typically individual arbitration, which can be more costly and complex for individual consumers than small claims or class proceedings. EU and UK consumers should note this may not be enforceable against them under local consumer protection law.
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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"YOU AND FIGMA AGREE THAT ANY DISPUTE, CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THESE TERMS OR THE BREACH, TERMINATION, ENFORCEMENT, INTERPRETATION OR VALIDITY THEREOF OR THE USE OF THE SERVICES (COLLECTIVELY, 'DISPUTES') WILL BE SETTLED BY BINDING ARBITRATION, EXCEPT THAT EACH PARTY RETAINS THE RIGHT TO BRING AN INDIVIDUAL ACTION IN SMALL CLAIMS COURT AND THE RIGHT TO SEEK INJUNCTIVE OR OTHER EQUITABLE RELIEF IN A COURT OF COMPETENT JURISDICTION TO PREVENT THE ACTUAL OR THREATENED INFRINGEMENT, MISAPPROPRIATION OR VIOLATION OF A PARTY'S COPYRIGHTS, TRADEMARKS, TRADE SECRETS, PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS. YOU ACKNOWLEDGE AND AGREE THAT YOU AND FIGMA ARE EACH WAIVING THE RIGHT TO A TRIAL BY JURY OR TO PARTICIPATE AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS ACTION OR REPRESENTATIVE PROCEEDING.— Excerpt from Figma's Figma Terms of Service
(1) REGULATORY LANDSCAPE: This provision engages the Federal Arbitration Act (FAA) in the US, which generally permits mandatory arbitration clauses in commercial agreements. However, it may conflict with EU Directive 93/13/EEC on unfair terms in consumer contracts and UK consumer protection regulations, potentially rendering it unenforceable against individual consumers in those jurisdictions. The FTC has regulatory interest in dispute resolution provisions that may be unfair or deceptive. (2) GOVERNANCE EXPOSURE: High. The class action waiver, combined with mandatory arbitration, significantly limits collective redress mechanisms for users. This creates governance exposure particularly for enterprise deployments where employee-users may have disputes, and for any consumer-facing use cases. The provision as drafted is broadly scoped to cover all disputes arising from the terms or service use. (3) JURISDICTION FLAGS: EU/EEA and UK users face heightened exposure as mandatory arbitration and class action waivers for consumer contracts are frequently unenforceable or restricted under local law. California's consumer protection framework may also interact with arbitration enforceability depending on the nature of the dispute. Illinois, New York, and other states with strong consumer protection statutes should be assessed. (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should evaluate whether this clause is compatible with their standard vendor risk frameworks. Where Figma is deployed for employee use, HR and legal teams should assess whether disputes arising from that use are adequately addressed. The provision's liability implications should be reviewed against enterprise indemnification expectations. (5) COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the arbitration clause is consistent with obligations to employee-users or client users. For EU/UK deployments, local counsel should evaluate enforceability. Organizations should document their review of this clause as part of vendor onboarding, and consider whether contractual carve-outs or supplemental agreements are needed.
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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 right to take Figma to court and prevents you from joining with other affected users in a group lawsuit, which can significantly reduce your practical ability to seek redress for lower-value claims.
This provision means that if Figma harms you in some way, your only formal legal remedy is typically individual arbitration, which can be more costly and complex for individual consumers than small claims or class proceedings. EU and UK consumers should note this may not be enforceable against them under local consumer protection law.
ConductAtlas has identified this type of provision across 131 platforms. See the full comparison.
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