You cannot sue OpenAI as part of a group or class action lawsuit; any legal claim must be brought individually, whether in arbitration or (if the waiver is unenforceable) in court.
This analysis describes what OpenAI'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
The class action waiver means that even if many users experience the same harm, each must pursue claims individually, which may make low-value individual claims economically impractical to pursue.
Interpretive note: Enforceability of the class action waiver may vary by jurisdiction, particularly in California and EU/UK consumer law contexts.
Users waive the right to participate in class action or representative proceedings against OpenAI, limiting legal recourse to individual arbitration or, where the waiver is found unenforceable, individual court claims only.
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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...
YOU AND LIME AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING.
YOU AND GOAT AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING.
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"CLASS ACTION WAIVER. You and OpenAI agree that any claims must be brought in your respective individual capacities, and not as a plaintiff or class member in any purported class or representative proceeding. Unless we agree otherwise, the arbitrator may not consolidate more than one person's claims. If this class action waiver is found unenforceable as to any claim or request for relief, then only that claim or request for relief shall proceed in court and shall be severed from any arbitration.— Excerpt from OpenAI's OpenAI Business Terms
1) REGULATORY LANDSCAPE: The FTC and state attorneys general have enforcement interest in class action waivers used in consumer contracts. California's Consumers Legal Remedies Act (CLRA) and other state statutes may limit or void class action waivers in consumer contexts. The waiver engages the FAA, which courts have generally used to uphold such provisions, though jurisdiction-specific exceptions exist. 2) GOVERNANCE EXPOSURE: High. Class action waivers in consumer AI service agreements are a recognized area of regulatory and judicial attention. The severability clause preserves the arbitration agreement if the waiver is struck down, limiting some risk to OpenAI, but the provision nonetheless represents a significant consumer rights limitation. 3) JURISDICTION FLAGS: California presents heightened exposure; California courts have in some contexts refused to enforce class action waivers that make individual claims economically unviable. EU and UK jurisdictions may not recognize class action waivers under consumer contract unfair terms frameworks. 4) CONTRACT AND VENDOR IMPLICATIONS: B2B customers deploying OpenAI technology to end consumers should assess whether this upstream class action waiver creates downstream liability gaps if their end users seek collective redress. 5) COMPLIANCE CONSIDERATIONS: Legal teams should monitor judicial developments regarding class action waiver enforceability in the jurisdictions where their user base is concentrated, and assess whether the severability clause adequately protects their dispute resolution framework.
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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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The class action waiver means that even if many users experience the same harm, each must pursue claims individually, which may make low-value individual claims economically impractical to pursue.
Users waive the right to participate in class action or representative proceedings against OpenAI, limiting legal recourse to individual arbitration or, where the waiver is found unenforceable, individual court claims only.
ConductAtlas has identified this type of provision across 74 platforms. See the full comparison.
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