If you have a dispute with Grammarly, you generally must resolve it through private arbitration rather than by going to court, and you give up your right to a jury trial.
This analysis describes what Grammarly'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
Mandatory arbitration means you cannot take Grammarly to court for most disputes, and the process is typically more limited in scope and discovery than litigation, which can disadvantage individual consumers.
Interpretive note: Enforceability varies by jurisdiction; EU and some state-level laws may limit or void mandatory arbitration clauses in consumer contracts, meaning the practical effect of this provision depends on where the user is located.
This clause removes your default right to litigate disputes with Grammarly in court and requires individual arbitration instead, which limits procedural options available to consumers and may reduce practical recourse for smaller claims. The arbitration agreement can be opted out of within 30 days of first accepting the terms.
How other platforms handle this
YOU AND UNITY 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 RETAIN...
PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS. IT PROVIDES FOR RESOLUTION OF MOST DISPUTES THROUGH INDIVIDUAL ARBITRATION INSTEAD OF COURT TRIALS AND CLASS ACTIONS. YOU HAVE A RIGHT TO OPT OUT OF THIS ARBITRATION AGREEMENT, AS DESCRIBED BELOW. By agreeing to these Terms, you agree...
You and OpenAI agree to resolve any claims arising out of or relating to these Terms or our Services through final and binding arbitration, except that you may bring claims in small claims court if they qualify. You may opt out of arbitration within 30 days of agreeing to these Terms by writing to u...
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"You and Grammarly agree to resolve any disputes through final and binding individual arbitration, rather than in court, except as set forth under Exceptions to Agreement to Arbitrate below. You are giving up your right to have disputes decided by a judge or jury.— Excerpt from Grammarly's Grammarly Terms of Service
REGULATORY LANDSCAPE: Mandatory arbitration clauses in consumer contracts engage the Federal Arbitration Act (FAA) in the US and are subject to FTC scrutiny under unfair or deceptive practices standards. Several states, including California, have enacted or proposed legislation limiting mandatory arbitration in consumer contexts. For EU users, such clauses may be considered unfair contract terms under the EU Unfair Contract Terms Directive, limiting enforceability in EU jurisdictions. GOVERNANCE EXPOSURE: High. The mandatory arbitration requirement applies to all users and disputes, with limited exceptions. The agreement specifies binding individual arbitration, which means Grammarly retains the ability to aggregate dispute resolution efficiency while individual users bear the procedural cost and complexity of arbitration proceedings. This is a standard but materially significant provision. JURISDICTION FLAGS: EU and EEA users may find this clause unenforceable or limited under local consumer protection law, particularly where it prevents access to national courts. California residents should be aware of state-level consumer arbitration protections. UK users post-Brexit face similar unfair terms considerations under the Consumer Rights Act. The practical enforceability of this clause varies materially by jurisdiction. CONTRACT AND VENDOR IMPLICATIONS: Organizations entering into Grammarly agreements on behalf of employees or users should assess whether arbitration provisions flow through to individual users or whether enterprise agreements provide alternative dispute resolution mechanisms. B2B contracts may include separate dispute resolution terms that supersede this consumer ToS provision. COMPLIANCE CONSIDERATIONS: Legal teams should document the arbitration opt-out window and ensure that any organizational onboarding process accounts for the 30-day opt-out period. Consumer-facing deployments should evaluate whether state-specific disclosures are required regarding arbitration. EU-based legal teams should assess whether local law renders this clause inapplicable to their user population.
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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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Mandatory arbitration means you cannot take Grammarly to court for most disputes, and the process is typically more limited in scope and discovery than litigation, which can disadvantage individual consumers.
This clause removes your default right to litigate disputes with Grammarly in court and requires individual arbitration instead, which limits procedural options available to consumers and may reduce practical recourse for smaller claims. The arbitration agreement can be opted out of within 30 days of first accepting the terms.
ConductAtlas has identified this type of provision across 13 platforms. See the full comparison.
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