Mandatory Individual Arbitration and Class Action Waiver

What it is

All disputes with Oscar arising from these Terms must be resolved through individual binding arbitration in New York under JAMS Streamlined Rules, and users waive the right to participate in class actions or class arbitration. Oscar retains the right to seek injunctive or equitable relief in court.

Why it matters (compliance & governance perspective)

This provision requires disputes to proceed through individual arbitration administered by JAMS in New York, New York, and includes an explicit waiver of jury trial and class action participation. The clause also includes a detailed bellwether process for coordinated proceedings involving 25 or more similar claims, which can delay individual claim resolution and may result in remaining claimants being redirected to New York courts rather than arbitration.

Consumer impact (what this means for users)

Under this clause, users who have disputes with Oscar must pursue them individually through JAMS arbitration rather than in court or as part of a class. Users who are part of coordinated proceedings of 25 or more similar claims may experience resolution delays due to the bellwether process, and those whose claims are not resolved in bellwether proceedings may be required to litigate in New York state or federal court.

Institutional analysis (regulatory & governance intelligence)

1. REGULATORY LANDSCAPE: Mandatory arbitration clauses in consumer contracts engage FTC Act consumer protection frameworks and are subject to ongoing regulatory scrutiny by the FTC and state attorneys general. The Federal Arbitration Act governs enforceability of arbitration agreements in the US. California and certain other states have enacted or attempted to enact restrictions on mandatory arbitration in consumer contracts, creating potential jurisdictional variation in enforceability. The JAMS mass arbitration rules referenced are subject to change and their current version should be confirmed. 2. GOVERNANCE EXPOSURE: High. The bellwether process for coordinated proceedings is an operationally significant mechanism that structures how mass claims are processed, limiting Oscar's fee exposure and sequencing claim resolution. This structure has been adopted by other large consumer-facing companies but remains subject to legal challenge and regulatory commentary. Claimants not selected as bellwethers who do not obtain resolution may lose arbitration rights entirely under the terms. 3. JURISDICTION FLAGS: California courts have at times declined to enforce certain arbitration provisions in consumer contracts, particularly where procedural unconscionability is alleged. New York is designated as the exclusive venue, which may create access barriers for users outside New York. The class action waiver may be subject to challenge under state consumer protection statutes in jurisdictions that restrict such waivers in adhesion contracts. 4. CONTRACT AND VENDOR IMPLICATIONS: The bellwether fee-sharing provision, which requires claimants to pay their share of JAMS fees in coordinated proceedings, may deter individual claims and warrants review for consistency with JAMS administrative rules. B2B contracts referencing these Terms should assess whether the arbitration clause applies to commercial disputes or only consumer disputes. 5. COMPLIANCE CONSIDERATIONS: Legal teams should confirm whether the current JAMS Streamlined Arbitration Rules and mass arbitration fee schedule align with the fee-sharing structure described in the bellwether provision. The clause's treatment of coordinated proceedings should be reviewed against any applicable state consumer arbitration laws. The New York venue requirement should be assessed for enforceability in jurisdictions with mandatory venue protections for consumers.

Applicable agencies

Provision details

Other risks in this policy

• Class actions and class arbitrations prohibited high
• Health content is informational only not medical advice high
• Oscar granted perpetual license to User Submissions high
• Oscar liability cap at fees paid or $100 high
• Oscar may suspend discontinue or restrict Services high
• Oscar may terminate user access for any reason high