Poshmark's maximum financial liability to you for any claim is capped at the amount you paid Poshmark in the six months before the dispute arose — potentially a very small amount.
If Poshmark's platform causes you significant financial harm — such as through a data breach, wrongful account suspension, or lost sale proceeds — your ability to recover damages is severely restricted.
The limitation of liability provision is standard in platform agreements but represents significant risk transfer to the user. Legal teams assessing merchant exposure should note that consequential, indirect, and punitive damages are expressly excluded, creating substantial uncovered risk for high-volume sellers.
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Poshmark users — especially sellers — are subject to a 20% commission fee on transactions over $15 and grant Poshmark a broad, royalty-free license to use their posted content. A mandatory arbitration clause with a class action waiver significantly limits users' ability to seek legal redress through courts, which is a material restriction on consumer rights. You can opt out of the arbitration clause by sending written notice to Poshmark within 30 days of first accepting the Terms of Service.