OpenAI · OpenAI Business Terms · View original document ↗

Governing Law and Jurisdiction

Medium severity Medium confidence Explicitdocumentlanguage Common · 175 of 325 platforms
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Document Record

What it is

California law governs this agreement, and any court disputes must be filed in San Francisco courts, meaning users outside California agree to have their disputes handled under California law in a California 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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

Users outside California, including international users, who pursue non-arbitrable claims must do so under California law in San Francisco courts, which may create practical and financial barriers to pursuing legal claims.

Interpretive note: Enforceability of the California forum selection clause for EU and UK consumers may be limited by mandatory consumer protection rules that override contractual choice of forum; application varies by jurisdiction.

Consumer impact (what this means for users)

Non-California users who pursue court claims against OpenAI must do so in San Francisco, California, under California law, which may involve significant travel and legal costs relative to pursuing claims in their home jurisdiction.

How other platforms handle this

Cohere Medium

This Agreement will be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein, without regard to conflict of law principles. Each party irrevocably submits to the exclusive jurisdiction of the courts of Ontario, Canada for t...

Replit Medium

These Terms shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflict of law principles. Any disputes not subject to arbitration shall be brought exclusively in the state or federal courts located in San Francisco County, California.

Tabnine Medium

These Terms shall be governed by and construed in accordance with the laws of the State of New York, without regard to its conflict of laws provisions. Any disputes arising out of or relating to these Terms or the Services shall be subject to the exclusive jurisdiction of the state and federal court...

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▸ View Original Clause Language DOCUMENT RECORD
"
These Terms are governed by the laws of the State of California, without regard to its conflict of laws provisions. Any disputes not subject to arbitration will be resolved exclusively in the state or federal courts located in San Francisco County, California, and you consent to personal jurisdiction in those courts.

— Excerpt from OpenAI's OpenAI Business Terms

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

1) REGULATORY LANDSCAPE: Forum selection clauses in consumer contracts may require evaluation under EU Regulation 1215/2012 (Brussels I Recast), which generally requires that consumers be sued and may sue in their country of domicile, potentially overriding this forum selection clause for EU consumers. UK courts may apply similar protections post-Brexit. The California choice of law provision may conflict with mandatory consumer protection rules in other jurisdictions that cannot be contractually waived. 2) GOVERNANCE EXPOSURE: Medium. For US users, California governing law and forum selection is a standard provision. For EU and UK users, the practical enforceability of this forum selection clause may be limited by consumer protection rules that cannot be waived by contract, and local courts may apply their own mandatory consumer law regardless of this clause. 3) JURISDICTION FLAGS: EU and UK users have the highest exposure to forum selection unenforceability; Brussels I Recast and equivalent UK rules generally protect consumers' right to litigate in their home jurisdiction. Australian and Canadian consumer protection frameworks may similarly limit forum selection clause enforceability. 4) CONTRACT AND VENDOR IMPLICATIONS: B2B customers should assess whether the California forum and governing law provisions are consistent with their own standard commercial contract requirements and whether enterprise agreements permit negotiation of jurisdiction terms. 5) COMPLIANCE CONSIDERATIONS: Organizations operating internationally should assess whether California governing law is consistent with their obligations under local mandatory consumer or data protection law, and whether their own downstream contracts with users are consistent with this upstream choice of law.

Full compliance analysis

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Applicable agencies

  • State AG
    State attorneys general have authority over forum selection clauses in consumer contracts that may conflict with their state's consumer protection laws
    File a complaint →

Applicable regulations

FAA
United States Federal

Provision details

Document information
Document
OpenAI Business Terms
Entity
OpenAI
Document last updated
May 11, 2026
Tracking information
First tracked
May 11, 2026
Last verified
May 12, 2026
Record ID
CA-P-010576
Document ID
CA-D-00755
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
c06da29ac3099c1e9c26dfbf9e242b518d144f7939ac8c6a0334e30783b2c187
Analysis generated
May 11, 2026 11:57 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: OpenAI
Document: OpenAI Business Terms
Record ID: CA-P-010576
Captured: 2026-05-11 11:57:24 UTC
SHA-256: c06da29ac3099c1e…
URL: https://conductatlas.com/platform/openai/openai-business-terms/governing-law-and-jurisdiction/
Accessed: May 13, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does OpenAI's Governing Law and Jurisdiction clause do?

Users outside California, including international users, who pursue non-arbitrable claims must do so under California law in San Francisco courts, which may create practical and financial barriers to pursuing legal claims.

How does this clause affect you?

Non-California users who pursue court claims against OpenAI must do so in San Francisco, California, under California law, which may involve significant travel and legal costs relative to pursuing claims in their home jurisdiction.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 175 platforms. See the full comparison.

Is ConductAtlas affiliated with OpenAI?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by OpenAI.