Mandatory Arbitration and Class Action Waiver

What it is

The agreement requires that nearly all disputes between users and Kajabi be resolved through individual binding arbitration rather than court proceedings, and waives the right to bring or participate in class-action lawsuits or class-wide arbitration. Certain dispute types are excluded from this requirement as described in Section 15.

Why it matters (compliance & governance perspective)

This provision requires that disputes proceed through individual binding arbitration and establishes a contractual waiver of class-action participation, which channels dispute resolution away from court proceedings and consolidates claims into individual arbitration under the rules and forum specified in Section 15.

Consumer impact (what this means for users)

Under this clause, creators and Kajabi must resolve covered disputes through individual binding arbitration rather than litigation, and the agreement waives the right to participate in any class-action lawsuit or class-wide arbitration proceeding. Certain dispute types identified in Section 15 are carved out from this requirement.

What you can do

Institutional analysis (Compliance & governance intelligence)

REGULATORY LANDSCAPE: Pre-dispute arbitration clauses and class action waivers in consumer and small-business contracts are subject to scrutiny under the FTC Act and applicable state consumer protection statutes. California courts and the California legislature have imposed restrictions on class action waivers in certain consumer contracts; enforceability in California and other states with analogous statutes depends on jurisdiction-specific analysis. The Consumer Financial Protection Bureau has separately addressed arbitration in financial services contexts, which may be relevant if Kajabi Financial, LLC is a party to the agreement. GOVERNANCE EXPOSURE: High. The breadth of the arbitration clause, covering disputes related to the terms or use of services, is standard in platform agreements but creates significant operational implications for creators whose disputes with Kajabi would otherwise be amenable to class treatment given the volume of similarly situated users. JURISDICTION FLAGS: California presents heightened exposure due to ongoing legislative and judicial scrutiny of arbitration agreements in consumer and small-business contexts. EU-resident users may have rights under applicable EU consumer protection directives that limit the enforceability of pre-dispute arbitration clauses. The provision's enforceability may also vary in the UK post-Brexit under the Unfair Terms in Consumer Contracts Regulations framework. CONTRACT AND VENDOR IMPLICATIONS: B2B procurement teams should note that the clause applies to entities signing up on behalf of a business and its affiliates, meaning the arbitration obligation and class action waiver may extend to affiliated entities. The agreement does not clearly articulate whether the arbitration obligation survives termination of the account. COMPLIANCE CONSIDERATIONS: Legal teams should review Section 15 in full to identify the arbitration administrator, applicable rules, fee-splitting provisions, and any opt-out mechanism and deadline. Where the platform is used by California residents or EU residents, jurisdiction-specific enforceability analysis is warranted before relying on this clause as a complete bar to litigation.

Applicable agencies

Provision details

Other risks in this policy

• Content License Grant to Kajabi medium
• Account Eligibility and Age Requirement low
• Acceptable Use Policy Incorporation medium
• AI-Generated Output Included in Content Definition medium
• Policy Incorporation by Reference and Updates low
• Entity and Affiliate Binding medium

Related Analysis

• Coinbase Requires Mandatory Arbitration. You Have 30 Days to Opt Out.

  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.