If you have a legal dispute with Twilio, you must resolve it through private arbitration — not a court — and you cannot join a class action lawsuit against Twilio.
This analysis describes what Segment'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 clause establishes the procedural mechanism for dispute resolution and modifies the default forum and proceedings available under law. It establishes that arbitration is the contractually required dispute resolution pathway, which affects how disagreements between the parties are adjudicated.
The updated terms establish a binding arbitration requirement for users domiciled or registered in Mexico, replacing prior dispute resolution procedures. Under the revised Section 10.5, Mexico-domiciled users must first engage in good faith negotiations with Segment for up to 30 days, and if unresolved, disputes proceed to binding arbitration administered by the Centro de Arbitraje de México (CAM) in Mexico City before a sole arbitrator, with both parties splitting arbitration costs. Additionally, the agreement now explicitly carves out Mexico's Federal Consumer Protection Law (Ley Federal de Protección al Consumidor), stating it does not apply to this commercial agreement. Mexico users also face a new obligation to comply with anti-money laundering and anti-corruption requirements under applicable Mexican law.
View change record →Segment's updated terms now apply Japan-specific dispute resolution, verification, and tax requirements to customers domiciled or registered in Japan. The agreement now states that arbitration proceedings for Japanese customers will take place in Mexico City, Japan (implied Tokyo venue under the new Japan section), conducted in English. Japanese customers may be required to submit government-issued ID documents and complete verification processes as required under applicable Japanese law, including the Act on Prevention of Transfer of Criminal Proceeds and the Telecommunications Business Act. All fees are payable in Japanese Yen, and taxes will include Japanese consumption tax. Intellectual property rights now incorporate Japanese Copyright Act provisions. You can review the specific verification requirements by contacting Segment or reviewing the applicable service section.
View change record →Businesses and developers who experience harm from Twilio's services — including wrongful account terminations or data breaches — cannot pursue class action litigation and must instead use individual arbitration, which is typically more expensive and less accessible for smaller claims.
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 ...
THESE TERMS REQUIRE THE USE OF ARBITRATION (SECTION 12.2) ON AN INDIVIDUAL BASIS TO RESOLVE DISPUTES, RATHER THAN JURY TRIALS OR CLASS ACTIONS, AND ALSO LIMIT THE REMEDIES AVAILABLE TO YOU IN THE EVENT OF A DISPUTE.
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"YOU AND TWILIO AGREE THAT ANY DISPUTE, CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THIS AGREEMENT 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 BRING AN INDIVIDUAL ACTION IN SMALL CLAIMS COURT. YOU ACKNOWLEDGE AND AGREE THAT YOU AND TWILIO 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.— Excerpt from Segment's Segment Terms of Service
REGULATORY FRAMEWORK: Mandatory arbitration clauses in B2B contracts are generally enforceable under the Federal Arbitration Act (FAA, 9 U.S.C. § 1 et seq.). Class action waivers are enforced under AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011). State-level consumer protection statutes in California (Cal. Civ. Code § 1751) and other states may limit enforceability in certain consumer contexts, though B2B applicability reduces this risk.
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This clause establishes the procedural mechanism for dispute resolution and modifies the default forum and proceedings available under law. It establishes that arbitration is the contractually required dispute resolution pathway, which affects how disagreements between the parties are adjudicated.
Businesses and developers who experience harm from Twilio's services — including wrongful account terminations or data breaches — cannot pursue class action litigation and must instead use individual arbitration, which is typically more expensive and less accessible for smaller claims.
ConductAtlas has identified this type of provision across 132 platforms. See the full comparison.
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