Mandatory Arbitration and Class Action Waiver

What it is

The agreement requires that most disputes between users and Hims & Hers, Medical Groups, or Providers be resolved through binding individual arbitration rather than court proceedings, and both parties waive the right to a jury trial and class action participation. A 30-day opt-out window is available from the date of first acceptance.

Why it matters (compliance & governance perspective)

This provision requires disputes to proceed through individual binding arbitration rather than civil litigation or class action, covering not only Hims & Hers but also Medical Groups and Providers as named beneficiaries of the clause. The scope of the waiver and its extension to third-party medical entities may require evaluation under applicable state law, as certain jurisdictions limit the enforceability of consumer arbitration waivers in healthcare contexts.

Consumer impact (what this means for users)

Under this clause, users who do not submit a timely opt-out notice must resolve disputes through binding individual arbitration and cannot participate in class action lawsuits or class-wide arbitration proceedings against Hims & Hers, Medical Groups, or Providers. The agreement states that a written opt-out notice submitted within 30 days of first acceptance preserves the right to proceed in court.

What you can do

Institutional analysis (regulatory & governance intelligence)

REGULATORY LANDSCAPE: The Federal Arbitration Act governs the enforceability of this clause at the federal level. State-specific consumer protection statutes in California, New Jersey, and other jurisdictions impose additional requirements or limitations on mandatory arbitration clauses in consumer contracts, including healthcare-adjacent agreements. The FTC has issued guidance on unfair or deceptive practices in arbitration disclosures, and the CFPB has authority over arbitration clauses in certain financial service contexts that may be tangentially engaged by subscription billing disputes. GOVERNANCE EXPOSURE: High. The clause extends mandatory arbitration to disputes involving Medical Groups and Providers as named third-party beneficiaries, which is operationally distinct from standard platform arbitration clauses that apply only to the platform operator. State courts in California and elsewhere have periodically declined to enforce broad consumer arbitration waivers, particularly in healthcare service contexts, creating jurisdictional enforcement uncertainty. JURISDICTION FLAGS: California presents heightened exposure due to state court scrutiny of class action waivers and arbitration clauses in consumer contracts. Healthcare-specific arbitration limitations exist in several states. New Jersey and Washington state have also applied scrutiny to consumer arbitration clauses. The clause's extension to disputes with Medical Groups and Providers may face additional challenge in states with specific patient rights statutes. CONTRACT AND VENDOR IMPLICATIONS: The designation of Medical Groups and Providers as third-party beneficiaries of the arbitration clause creates a contractual dependency that procurement and vendor governance teams should evaluate when assessing liability allocation across the platform ecosystem. The clause does not appear to include audit rights or indemnification carve-outs that would typically appear in B2B agreements with healthcare vendors. COMPLIANCE CONSIDERATIONS: Legal teams should verify that the opt-out mechanism is operationally functional, that the 30-day window is clearly disclosed at account creation, and that the arbitration clause's extension to Medical Groups and Providers is consistent with applicable state telehealth and patient rights regulations. Jurisdictional enforceability assessments should be updated for any states where the service launches or expands operations.

Applicable agencies

Provision details

Other risks in this policy

• Disclosure Required When Interacting With AI Chatbot medium
• Agreement Revisions Effective Upon Posting high
• Arbitration Opt-Out Within Thirty Days high
• Binding Arbitration Agreement All Disputes high
• Class Action Waiver Jury Trial Waiver high
• Disclaimer Of All Warranties Including Implied Warranties high