If you live outside California and have a dispute that is not subject to arbitration, you would need to litigate in California courts, which is expensive and impractical for most consumers.
Poshmark's terms impose a 20% commission on all sales over $15 and grant the platform a permanent, irrevocable license to use seller-submitted photos and content for commercial purposes. Sellers and buyers are required to resolve all disputes through binding individual arbitration, waiving the right to participate in class action lawsuits, which significantly limits collective legal recourse in the event of systemic platform issues. You can opt out of the arbitration clause by sending written notice to Poshmark within 30 days of first accepting the Terms of Service.