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Mandatory Individual Arbitration

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Document Record

What it is

The agreement requires that Claims against Figma be resolved through binding individual arbitration administered by NAM under its Comprehensive Dispute Resolution Rules, unless the Customer submits a written opt-out notice within 30 days of first agreeing to the Terms. The arbitrator holds exclusive authority to resolve threshold arbitrability issues, including whether the Terms are applicable or enforceable.

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This provision requires disputes to proceed through individual arbitration rather than court, with the arbitrator holding exclusive authority to determine arbitrability. The 30-day opt-out window from first agreement is the sole mechanism by which a Customer may preserve the right to litigate Claims in court.

Recent Activity

This document changed recently

Medium Mar 31, 2026

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 →

Clause Stability Stable

0
Changes
4
Months Monitored
Jul 9, 2026
First Seen
Jul 9, 2026
Last Seen

Consumer impact (what this means for users)

Under this clause, the agreement requires Customer to submit Claims against Figma to binding individual arbitration administered by NAM, with fees allocated per NAM rules unless a Claim is found frivolous. The arbitration may be conducted in writing, remotely, or in San Francisco, California.

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 an email to arbitration-opt-out@figma.com including your name, mailing address, email address, and an unequivocal statement that you are opting out of the arbitration agreement. This must be submitted within 30 days of the date you first agree to these Terms.

Cross-platform context

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▸ View Original Clause Language DOCUMENT RECORD
"
ARBITRATION NOTICE: UNLESS CUSTOMER OPTS OUT OF ARBITRATION WITHIN 30 DAYS OF THE DATE CUSTOMER FIRST AGREES TO THESE TERMS BY FOLLOWING THE OPT-OUT PROCEDURE SPECIFIED IN THE "DISPUTE RESOLUTION" SECTION BELOW, THESE TERMS WILL, WITH LIMITED EXCEPTION, REQUIRE CUSTOMER TO SUBMIT CLAIMS CUSTOMER HAS AGAINST FIGMA TO BINDING AND FINAL ARBITRATION SOLELY ON AN INDIVIDUAL BASIS, AND NOT AS PART OF A CLASS, REPRESENTATIVE OR CONSOLIDATED ACTION. BY ENTERING INTO THESE TERMS, CUSTOMER AND FIGMA ARE EACH WAIVING THE RIGHT TO TRIAL BY JURY.

Excerpt from Figma's Terms of Service

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

(1) REGULATORY LANDSCAPE: The arbitration clause designates the Federal Arbitration Act as its governing law, which generally preempts state law restrictions on arbitration agreements. The enforceability of delegation clauses assigning arbitrability determinations to the arbitrator has been subject to evolving judicial interpretation under U.S. Supreme Court precedent; compliance teams should monitor applicable case law in the governing jurisdiction. The FTC has issued guidance on unfair or deceptive practices that may interact with mandatory arbitration in consumer contexts. (2) GOVERNANCE EXPOSURE: Medium. The delegation of threshold arbitrability issues to the arbitrator, including determinations of unconscionability, creates procedural complexity for Customers seeking to challenge the arbitration agreement itself. The 60-day pre-arbitration notice requirement (Pre-Arbitration Letter to legal@figma.com) introduces a mandatory cooling-off period before formal arbitration can be initiated. (3) JURISDICTION FLAGS: California courts have historically scrutinized mandatory arbitration clauses in consumer contracts under the California Consumers Legal Remedies Act and unconscionability doctrine. EU/EEA customers may find mandatory arbitration provisions difficult to enforce given consumer protection frameworks that preserve access to national courts. The opt-out mechanism is available globally but must be exercised within 30 days of first agreement. (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should note that the arbitration clause applies to the Starter and Professional plan Terms only; Organization and Enterprise customers are directed to the Software Services Agreement, which may contain different dispute resolution provisions. The clause expressly voids any attempt to opt out multiple parties with a single notice, requiring individual opt-out per account holder. (5) COMPLIANCE CONSIDERATIONS: Legal teams should establish an internal process to submit opt-out notices within the 30-day window for any accounts where litigation access is a compliance requirement. The pre-arbitration letter procedure requires individualized written notice including name, mailing address, email, and counsel information, and should be incorporated into dispute response workflows.

Full institutional analysis

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Applicable agencies

  • FTC
    The FTC has authority over unfair or deceptive practices in consumer contracts, which may interact with mandatory arbitration clauses in consumer-facing terms of service.
    File a complaint →

Provision details

Document information
Document
Figma Terms of Service
Entity
Figma
Document last updated
May 5, 2026
Tracking information
First tracked
July 9, 2026
Last verified
July 9, 2026
Record ID
CA-P-014612
Document ID
CA-D-00205
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
4106ee3ad0aa07e2637b5162e0bd4edf0940a8905d10a4f235130ed1e05cafcd
Analysis generated
July 9, 2026 06:02 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Figma
Document: Figma Terms of Service
Record ID: CA-P-014612
Captured: 2026-07-09 06:02:18 UTC
SHA-256: 4106ee3ad0aa07e2…
URL: https://conductatlas.com/platform/figma/figma-terms-of-service/provision/CA-P-014612/mandatory-individual-arbitration/
Accessed: July 23, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Figma's Mandatory Individual Arbitration clause do?

This provision requires disputes to proceed through individual arbitration rather than court, with the arbitrator holding exclusive authority to determine arbitrability. The 30-day opt-out window from first agreement is the sole mechanism by which a Customer may preserve the right to litigate Claims in court.

How does this clause affect you?

Under this clause, the agreement requires Customer to submit Claims against Figma to binding individual arbitration administered by NAM, with fees allocated per NAM rules unless a Claim is found frivolous. The arbitration may be conducted in writing, remotely, or in San Francisco, California.

Is ConductAtlas affiliated with Figma?

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