Mandatory Individual Arbitration

What it is

The agreement requires that nearly all disputes between users and Hims & Hers be resolved through binding individual arbitration administered by JAMS rather than through court litigation, with limited exceptions for small claims court.

Why it matters (compliance & governance perspective)

This provision requires users to resolve disputes individually through JAMS arbitration, which governs the procedural mechanism available for claims including those related to billing, service delivery, and health data practices.

Consumer impact (what this means for users)

Under this clause, users who have not opted out within 30 days of account creation must pursue any claims against Hims & Hers through individual JAMS arbitration rather than court proceedings, including claims related to prescription services, billing, or account termination.

What you can do

Institutional analysis (regulatory & governance intelligence)

(1) REGULATORY LANDSCAPE: The FTC Act and applicable state consumer protection statutes govern the enforceability of pre-dispute arbitration clauses in consumer contracts. California courts have periodically scrutinized class action waivers in consumer arbitration agreements under unconscionability doctrine; the enforceability of this clause in California and other states with strong consumer protection frameworks warrants jurisdiction-specific legal review. JAMS is named as the administering body, and JAMS Consumer Arbitration Rules would apply. (2) GOVERNANCE EXPOSURE: High. Mandatory consumer arbitration clauses in health-adjacent service agreements carry elevated exposure given the nature of potential claims (health data, prescription errors, billing disputes). The clause's breadth covers all disputes relating to use of services, which in a telehealth context may include claims with regulatory dimensions. (3) JURISDICTION FLAGS: California residents face the most significant exposure given the state's history of challenging class action waivers; New Jersey and Washington state also maintain heightened judicial scrutiny of consumer arbitration clauses. EU/EEA users are not clearly addressed, and mandatory arbitration clauses may not be enforceable under EU consumer protection directives. (4) CONTRACT AND VENDOR IMPLICATIONS: B2B or institutional purchasers using the platform should review whether this clause applies to commercial account relationships; the clause as written appears directed at individual consumers but its scope language is broad. Indemnification and liability cap provisions elsewhere in the agreement interact with this clause by limiting the value of claims that proceed to arbitration. (5) COMPLIANCE CONSIDERATIONS: Compliance teams should confirm the opt-out notification mechanism is clearly presented at account creation and that the 30-day window and written notice process are documented; they should assess whether the arbitration clause is presented with adequate conspicuousness to satisfy applicable state notice requirements; jurisdiction-specific enforceability assessments are warranted for California, New Jersey, and any EU user populations.

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