Even if Poshmark causes significant financial harm — such as a data breach exposing your payment information or a platform error causing you to lose sales — your legal recovery is capped at the fees you paid, which could be a very small amount.
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.