This clause means you cannot join or lead a class action lawsuit against OpenAI; any legal claim must be pursued individually.
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 limits users' ability to pool claims with other affected individuals, which is particularly relevant for disputes involving small individual harms that may only be practical to pursue collectively.
Interpretive note: Enforceability of class action waivers varies by jurisdiction and may be limited under California law, EU consumer protection directives, and UK consumer rights legislation.
Under this provision, each user must pursue any legal claim against OpenAI individually, removing the option to participate in collective or class action litigation that might otherwise be available for widespread shared grievances.
How other platforms handle this
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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"You and OpenAI agree that any disputes must be brought in the parties' individual capacity and not as a plaintiff or class member in any purported class, representative, or consolidated proceeding.— Excerpt from OpenAI's OpenAI Service Terms
REGULATORY LANDSCAPE: Class action waivers in consumer contracts are reviewed under the Federal Arbitration Act and have been the subject of FTC and CFPB enforcement attention; in California, the enforceability of class action waivers is constrained by the Discover Bank rule as modified by subsequent case law, and in the EU and UK, such waivers are generally not enforceable against consumers under consumer protection directives. GOVERNANCE EXPOSURE: High. The waiver operates in conjunction with the arbitration clause to limit collective redress mechanisms for all users globally. JURISDICTION FLAGS: California, New Jersey, and other states with strong consumer protection statutes may limit enforcement of class action waivers outside arbitration; EU users retain rights to collective redress under the Representative Actions Directive; UK users may have similar protections. CONTRACT AND VENDOR IMPLICATIONS: Enterprise integrators should note that downstream consumer users may challenge this clause, creating potential compliance exposure if their own agreements incorporate OpenAI's terms by reference. COMPLIANCE CONSIDERATIONS: Legal teams should assess whether this waiver is disclosed with sufficient prominence at account creation and whether jurisdiction-specific carve-outs are required to maintain compliance with EU and state consumer protection frameworks.
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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 limits users' ability to pool claims with other affected individuals, which is particularly relevant for disputes involving small individual harms that may only be practical to pursue collectively.
Under this provision, each user must pursue any legal claim against OpenAI individually, removing the option to participate in collective or class action litigation that might otherwise be available for widespread shared grievances.
ConductAtlas has identified this type of provision across 74 platforms. See the full comparison.
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