If you have a dispute with Scale AI, you cannot take them to court in front of a jury — you must go through a private arbitration process instead, with very limited ability to appeal the result.
Consumer impact (what this means for users)
This clause forces users into a private dispute resolution process that statistically favors repeat corporate users over individual claimants, and prevents you from accessing the public court system for most grievances against Scale AI.
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
Send a written notice to Scale AI's legal team within 30 days of first accepting the Terms, clearly stating your name, account email, and your intent to opt out of mandatory arbitration. Keep a copy of your sent email as proof of timely opt-out.
Cross-platform context
See how other platforms handle Mandatory Individual Arbitration and similar clauses.
Arbitration is typically more expensive and less favorable for individual consumers than court proceedings, and it eliminates your right to a jury trial.
View original clause language
You and Scale agree to resolve any disputes, claims or controversies arising out of or relating to this Agreement or the Services through binding individual arbitration rather than in court, except that you may assert claims in small claims court if your claims qualify. There is no judge or jury in arbitration, and court review of an arbitration award is limited.
REGULATORY FRAMEWORK: Implicates Federal Arbitration Act (9 U.S.C. §§1-16), FTC Act Section 5 (15 U.S.C. §45) for unfair consumer practices, and California Arbitration Act (Cal. CCP §1280 et seq.). The AAA Consumer Arbitration Rules govern proceedings. FTC enforcement authority is primary; California AG has concurrent authority under CLRA and UCL.
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Compliance intelligence locked
Regulatory citations, enforcement risk, and due diligence action items.
Watcher: regulatory citations. Professional: full compliance memo.
Applicable agencies
FTC
The FTC has authority over unfair or deceptive consumer practices, including mandatory arbitration clauses that may be unconscionable or that impede consumer relief under FTC Act Section 5.
California Attorney General has enforcement authority over arbitration clauses under the CLRA and UCL, particularly where McGill rule violations apply.
ConductAtlas Policy Archive
Entity: Scale AI | Document: Scale AI Terms of Service | Record: CA-P-004324
Captured: 2026-04-30 08:42:44 UTC | SHA-256: b5bb4058a72d1d21…
URL: https://conductatlas.com/platform/scale-ai/scale-ai-terms-of-service/mandatory-individual-arbitration/
Accessed: May 2, 2026