If you have a dispute with Poshmark, you must resolve it through private arbitration rather than going to court, and you cannot join a class action lawsuit with other users.
Consumer impact (what this means for users)
This provision means that if Poshmark wrongs you — even in a way that affects thousands of users the same way — you must individually arbitrate the claim at your own time and expense, effectively eliminating collective legal recourse for low-value disputes.
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
Within 30 days of first accepting Poshmark's Terms of Service, send a written notice stating that you are opting out of the mandatory arbitration provision. The notice should include your name, Poshmark account username, and a clear statement of your intent to opt out. Retain a copy of the notice and proof of delivery.
Cross-platform context
See how other platforms handle Mandatory Individual Arbitration & Class Action Waiver and similar clauses.
This clause removes your ability to join other affected users in a class action lawsuit, which is often the only cost-effective way to challenge corporate wrongdoing involving small individual amounts.
View original clause language
You and Poshmark 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 (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. You acknowledge and agree that you and Poshmark are each waiving the right to a trial by jury or to participate as a plaintiff or class member in any purported class action or representative proceeding.
REGULATORY FRAMEWORK: This provision implicates the Federal Arbitration Act (FAA, 9 U.S.C. §1 et seq.) which generally preempts state-law challenges to arbitration clauses. The CFPB's 2017 arbitration rule (subsequently repealed by Congress) established regulatory precedent for scrutiny of mandatory arbitration in consumer financial services. The FTC Act Section 5 and the Consumer Financial Protection Act (12 U.S.C. §5531) are indirectly implicated if the clause is found to be an unfair practice. California Code of Civil Procedure §1281.2 provides limited grounds for courts to refuse arbitration enforcement.
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Applicable agencies
FTC
The FTC has authority under Section 5 of the FTC Act to challenge mandatory arbitration clauses that constitute unfair or deceptive consumer practices.
California Attorney General enforces consumer protection laws including the CLRA and UCL, which may apply to unconscionable arbitration clauses in consumer contracts.