California law governs these terms, and any court cases that are not sent to arbitration must be filed in San Francisco, California, which may be inconvenient for users outside that area.
This analysis describes what Plaid'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
Requiring disputes to be litigated in San Francisco creates a practical barrier to legal action for users who do not live in California, as they would need to appear in or retain counsel in a distant forum.
If a dispute with Plaid is not resolved through arbitration (for example, if the arbitration clause is found unenforceable), you must litigate it in San Francisco County, California, regardless of where you live.
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 shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflict of law provisions. Any dispute that is not subject to arbitration shall be resolved in the state or federal courts located in San Francisco County, California, and you consent to the personal jurisdiction of such courts.— Excerpt from Plaid's Plaid Terms of Use
(1) REGULATORY LANDSCAPE: Forum selection clauses in consumer contracts engage state consumer protection laws and in some states may be found unenforceable if they effectively deprive consumers of access to local courts. Some states have specific statutes limiting the enforceability of out-of-state forum selection clauses in consumer contracts. The FAA's preemption of state arbitration law does not necessarily extend to forum selection clauses for non-arbitrated disputes. (2) GOVERNANCE EXPOSURE: Low to Medium. California governing law is a standard choice for a California-based company and is generally enforceable. The San Francisco forum requirement is more likely to face challenge from consumers in distant states who can demonstrate that litigating in California is prohibitively burdensome, though this is a fact-specific analysis. (3) JURISDICTION FLAGS: States including New York, Texas, and Florida have consumer protection provisions that may apply to their residents regardless of a contractual choice of California law. EU and UK users retain their rights under local consumer protection laws and GDPR, which cannot be displaced by a contractual choice of California law. (4) CONTRACT AND VENDOR IMPLICATIONS: B2B agreements with Plaid may contain different governing law and forum provisions. Legal teams reviewing those agreements should confirm whether California law and San Francisco forum requirements are acceptable given their organization's litigation posture and counsel availability. (5) COMPLIANCE CONSIDERATIONS: Compliance teams in non-California jurisdictions should assess whether the California governing law selection interacts with mandatory local law requirements that apply to their users or operations, particularly in states with strong consumer financial protection statutes.
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Requiring disputes to be litigated in San Francisco creates a practical barrier to legal action for users who do not live in California, as they would need to appear in or retain counsel in a distant forum.
If a dispute with Plaid is not resolved through arbitration (for example, if the arbitration clause is found unenforceable), you must litigate it in San Francisco County, California, regardless of where you live.
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