The agreement specifies California law as the governing law and San Francisco County courts as the venue for disputes not resolved through arbitration.
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
This provision establishes California law and California courts as the exclusive legal framework for non-arbitrated disputes, which may affect users in other US states and internationally, as it requires litigation in a specific forum.
Interpretive note: EU/EEA and UK consumers may retain rights under applicable law to bring claims in their home jurisdiction notwithstanding this forum selection clause.
Changed 'conflict of laws provisions' to 'conflict of law principles'; removed 'exclusively' and removed explicit consent to personal jurisdiction language.
View full change record →Under this clause, disputes that proceed to court rather than arbitration are subject to California law and must be brought in San Francisco County. For users located outside California or outside the US, this creates a geographic constraint on court-based dispute resolution.
How other platforms handle this
These Terms shall be governed by the laws of the State of California, excluding its conflicts of law rules, and the federal laws of the United States. Any dispute arising from or relating to the subject matter of these Terms shall be finally settled by arbitration in San Francisco County, California...
These Terms of Service and any dispute or claim arising out of or in connection with them or their subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice o...
These Terms are governed by the laws of the State of Minnesota, without giving effect to any choice of law or conflict of law provisions. Any disputes not subject to arbitration will be resolved in the state or federal courts located in Hennepin County, Minnesota.
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"These Terms are governed by the laws of the State of California, without regard to its conflict of law principles. Any disputes not subject to arbitration will be resolved in the federal or state courts of San Francisco County, California.— Excerpt from OpenAI's OpenAI Business Terms
(1) REGULATORY LANDSCAPE: Governing law and mandatory forum selection clauses in consumer contracts may be subject to override by consumer protection laws in the user's home jurisdiction, particularly within the EU/EEA under Regulation (EU) 1215/2012 (Brussels I Recast) and Rome I Regulation, which preserve consumers' rights to rely on the mandatory protective provisions of their home country's law. UK consumers retain analogous protections post-Brexit. Relevant enforcement authorities include EU national courts and the UK courts. (2) GOVERNANCE EXPOSURE: Low for US users. Medium for EU/EEA and UK users, for whom the governing law clause may not fully displace mandatory protections under applicable consumer law. (3) JURISDICTION FLAGS: EU/EEA and UK consumers may not be bound by the California forum selection clause for consumer claims, as applicable law may permit or require claims to be brought in the consumer's home jurisdiction. California law may itself provide additional consumer protections not present in other US states. (4) CONTRACT AND VENDOR IMPLICATIONS: Operators with a global user base should assess whether the governing law clause is consistent with their own contractual obligations to users in non-California jurisdictions. (5) COMPLIANCE CONSIDERATIONS: Legal teams supporting international deployments should assess whether mandatory consumer protection provisions in the EU, UK, Australia, or other jurisdictions override the California governing law selection for consumer-facing claims.
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This provision establishes California law and California courts as the exclusive legal framework for non-arbitrated disputes, which may affect users in other US states and internationally, as it requires litigation in a specific forum.
Under this clause, disputes that proceed to court rather than arbitration are subject to California law and must be brought in San Francisco County. For users located outside California or outside the US, this creates a geographic constraint on court-based dispute resolution.
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