The agreement requires that most disputes between users and Luma be resolved through binding individual arbitration rather than court proceedings, and states that both parties waive the right to a jury trial and to participate in class action or representative proceedings.
This analysis describes what Luma AI'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
This provision requires disputes to proceed through individual arbitration rather than court litigation, and prohibits class action participation. The agreement references certain exceptions in Section 16.2, though the full text of those exceptions was not available in the provided document excerpt.
Provision name changed from 'Mandatory Arbitration and Class Action Waiver' to 'Mandatory Individual Arbitration and Class Action Waiver' for emphasis on 'individual' nature; text content is identical.
View full change record →Under this clause, the agreement requires disputes to be resolved through individual binding arbitration rather than court proceedings, and the agreement states that users waive the right to a jury trial and to class action participation. Applicable law in certain jurisdictions may constrain the enforceability of this waiver for consumer disputes.
How other platforms handle this
If, however, this Class Action Waiver is deemed invalid or unenforceable with respect to a particular Dispute...neither you nor Chegg will be entitled to arbitration of such Dispute.
the arbitration provider, National Arbitration and Mediation ("NAM"), shall not accept or administer any demand for arbitration and shall administratively close any arbitration unless the Party bringing such demand for arbitration can certify in writing that the terms...were fully satisfied.
Neither you nor we may elect arbitration of any claims seeking only individualized relief asserted by you or us in small claims court, so long as the action remains in that court and is not removed or appealed de novo...
"ARBITRATION NOTICE. Except for certain kinds of disputes described in Section 16.2, you agree that disputes arising under this Agreement will be resolved by binding, individual arbitration, and BY ACCEPTING THIS AGREEMENT, YOU AND LUMA ARE EACH WAIVING THE RIGHT TO A TRIAL BY JURY OR TO PARTICIPATE IN ANY CLASS ACTION OR REPRESENTATIVE PROCEEDING.Excerpt from Luma AI's Terms of Service
(1) REGULATORY LANDSCAPE: Mandatory arbitration clauses and class action waivers in consumer contracts are subject to ongoing regulatory scrutiny by the FTC, CFPB, and state attorneys general.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Search "[your state] attorney general consumer complaint" to find your state's direct complaint form
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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This provision requires disputes to proceed through individual arbitration rather than court litigation, and prohibits class action participation. The agreement references certain exceptions in Section 16.2, though the full text of those exceptions was not available in the provided document excerpt.
Under this clause, the agreement requires disputes to be resolved through individual binding arbitration rather than court proceedings, and the agreement states that users waive the right to a jury trial and to class action participation. Applicable law in certain jurisdictions may constrain the enforceability of this waiver for consumer disputes.
ConductAtlas has identified this type of provision across 205 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Luma AI.