You agree to waive your right to join or start a class action lawsuit against Scale AI, meaning any legal claim must be pursued individually, which can make smaller claims economically impractical.
This analysis describes what Scale AI'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
This provision structures the procedural framework for dispute resolution by limiting proceedings to individual claims and establishing a jury trial waiver in court proceedings. The restriction to individual arbitration modifies the available forums and procedures for resolving disputes between the parties.
Interpretive note: Enforceability depends on jurisdiction; EU and some U.S. state courts have declined to enforce class action waivers in consumer contexts under applicable local law.
This clause means you cannot join with other users to bring a collective lawsuit against Scale AI, and if your individual harm is small, the cost of pursuing it alone through arbitration may exceed any potential recovery.
How other platforms handle this
You and Teachable agree to resolve any disputes through final and binding arbitration, except as set forth under Exceptions to Agreement to Arbitrate below. You also agree that disputes will only be resolved on an individual basis and not as a class, consolidated, or representative action.
Any dispute arising from or relating to the subject matter of these Terms shall be finally settled by arbitration in San Francisco County, California, in accordance with the Streamlined Arbitration Rules and Procedures of Judicial Arbitration and Mediation Services, Inc. ("JAMS") then in effect, by ...
WHERE PERMITTED UNDER THE APPLICABLE LAW, YOU AND NETFLIX AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. Further, where permitted under the applicable law, unless ...
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"You and Scale each agree that any dispute resolution proceedings will be conducted only on an individual basis and not in a class, consolidated or representative action. If for any reason a claim proceeds in court rather than in arbitration, you and Scale each waive any right to a jury trial.— Excerpt from Scale AI's Scale AI Terms of Service
(1) REGULATORY LANDSCAPE: Class action waivers in consumer contracts are scrutinized under the FTC Act and have been challenged by state AGs in California and other states. The CFPB has specifically targeted class action waivers in financial products, though Scale AI is not a financial services provider. The EU Unfair Contract Terms Directive and national implementations generally treat class action waivers as potentially unfair terms in consumer contracts, making them unenforceable against EU consumers. The jury trial waiver is a separate but related recourse limitation. (2) GOVERNANCE EXPOSURE: High. The combination of mandatory arbitration and class action waiver creates a compound recourse limitation that is among the most restrictive standard structures available to companies under U.S. law. For institutional users, the waiver of jury trial in any court proceedings is an additional governance consideration for contract risk assessment. (3) JURISDICTION FLAGS: EU and EEA users are likely not bound by this waiver under local consumer protection law. UK users may similarly retain collective redress rights. California has specific scrutiny of class action waivers under consumer protection statutes, and courts have found some such waivers unconscionable depending on the circumstances of formation. Illinois, New York, and other states with strong consumer protection frameworks may also limit enforceability. (4) CONTRACT AND VENDOR IMPLICATIONS: For B2B customers, the class action waiver and jury trial waiver are standard considerations in vendor risk assessments. These provisions effectively foreclose coordinated litigation with other similarly situated business customers, which can limit leverage in disputes about systemic service failures or data breaches. (5) COMPLIANCE CONSIDERATIONS: Legal teams should document whether this provision has been adequately disclosed to users in each jurisdiction where Scale AI's website is accessible. Organizations subject to EU or UK law should assess whether to rely on the class action waiver in any dispute resolution strategy involving EU or UK counterparties. Consumer advocacy compliance programs should flag this provision for monitoring against evolving FTC and state AG enforcement priorities.
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This provision structures the procedural framework for dispute resolution by limiting proceedings to individual claims and establishing a jury trial waiver in court proceedings. The restriction to individual arbitration modifies the available forums and procedures for resolving disputes between the parties.
This clause means you cannot join with other users to bring a collective lawsuit against Scale AI, and if your individual harm is small, the cost of pursuing it alone through arbitration may exceed any potential recovery.
ConductAtlas has identified this type of provision across 86 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Scale AI.