If you have a dispute with Peloton — such as a billing issue, a product defect, or a service problem — you must resolve it through private arbitration rather than by suing Peloton in court. Only intellectual property disputes are exempt.
Consumer impact (what this means for users)
You lose the right to sue Peloton in court for most disputes, including issues related to billing errors, equipment defects, or service cancellations, and must instead use a private arbitration process that is generally less consumer-friendly than civil litigation.
What you can do
⚠️ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.
Opt Out of Arbitration
Within 30 days
Send a written notice stating your name, account email, and that you are opting out of the arbitration agreement within 30 days of first accepting the Terms of Service. Send via certified mail to Peloton's Legal Department at their New York headquarters.
Cross-platform context
See how other platforms handle Mandatory Binding Arbitration and similar clauses.
Arbitration removes your ability to have a judge or jury hear your case and typically favors companies over individual consumers in terms of process and outcomes.
View original clause language
YOU AND PELOTON 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 OR CONTENT (COLLECTIVELY, 'DISPUTES') WILL BE SETTLED BY BINDING ARBITRATION, EXCEPT THAT EACH PARTY RETAINS THE RIGHT TO SEEK INJUNCTIVE OR OTHER EQUITABLE RELIEF IN A COURT OF COMPETENT JURISDICTION TO PREVENT THE ACTUAL OR THREATENED INFRINGEMENT, MISAPPROPRIATION OR VIOLATION OF A PARTY'S COPYRIGHTS, TRADEMARKS, TRADE SECRETS, PATENTS, OR OTHER INTELLECTUAL PROPERTY RIGHTS.
REGULATORY FRAMEWORK: This provision implicates the Federal Arbitration Act (9 U.S.C. §§1-16), FTC Act Section 5 (unfair or deceptive practices, FTC enforcement), and state consumer protection statutes including California Civil Code §1281.2 and New York CPLR Article 75, which courts have used to invalidate unconscionable arbitration clauses. CFPB rulemaking activity (2024) on arbitration clauses in consumer contracts is relevant background.
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Applicable agencies
FTC
The FTC enforces against unfair or deceptive practices in consumer contracts including mandatory arbitration clauses that may be unconscionable or impede consumer rights under Section 5 of the FTC Act.
State Attorneys General, particularly in California and New York, have authority to challenge mandatory arbitration clauses under state consumer protection statutes.