Segment · Segment Terms of Service · View original document ↗

Mandatory Arbitration and Class Action Waiver

High severity Common · 132 of 343 platforms
Share 𝕏 Share in Share 🔒 PDF
Monitor governance changes for Segment Create a free account to receive the weekly governance digest and monitor one platform for governance changes.
Create free account No credit card required.
Document Record

What it is

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

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.

Recent Activity

This document changed recently

Medium May 9, 2026

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 →
Medium May 5, 2026

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 →

Consumer impact (what this means for users)

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.

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
    Review the arbitration clause in Twilio's ToS for any opt-out provision. If an opt-out is available, send written notice to Twilio's legal team at legal@twilio.com within 30 days of account creation, stating your name, account details, and intent to opt out of arbitration.

How other platforms handle this

Teachable Medium

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.

Substack Medium

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 ...

Pinecone Medium

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.

See all platforms with this clause type →

Monitoring

Segment has changed this document before.

Receive same-day alerts, structured change summaries, and monitoring for up to 25 platforms.

Start Monitor free trial Or create a free account →
▸ View Original Clause Language DOCUMENT RECORD
"
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

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

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.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

Track 1 platform — free Try Monitor free for 14 days

Free: track 1 platform + weekly digest. Monitor: 25 platforms + same-day alerts. No credit card required.

Applicable agencies

  • FTC
    The FTC has authority over unfair or deceptive practices including use of arbitration clauses that may limit consumer or business recourse under FTC Act Section 5.
    File a complaint →

Applicable regulations

FAA
United States Federal

Provision details

Document information
Document
Segment Terms of Service
Entity
Segment
Document last updated
May 5, 2026
Tracking information
First tracked
May 8, 2026
Last verified
May 8, 2026
Record ID
CA-P-006407
Document ID
CA-D-00699
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
977430b2264496ecbdb714c775602a9bdf2f57f24a6495ba35f765f94113b442
Analysis generated
May 8, 2026 09:56 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Segment
Document: Segment Terms of Service
Record ID: CA-P-006407
Captured: 2026-05-08 09:56:53 UTC
SHA-256: 977430b2264496ec…
URL: https://conductatlas.com/platform/segment/segment-terms-of-service/mandatory-arbitration-and-class-action-waiver/
Accessed: June 30, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

Other risks in this policy

Related Analysis

Compliance Governance Intelligence

Need to monitor specific governance provisions?

Compliance includes provision-level monitoring, governance timelines, regulatory mapping, and audit-ready analysis.

Arbitration clauses AI governance Data rights Indemnification Retention policies
Start Compliance free trial

Or start with Monitor →

Built from archived source documents, structured governance mappings, and historical version tracking.

Frequently Asked Questions

What does Segment's Mandatory Arbitration and Class Action Waiver clause do?

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.

How does this clause affect you?

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 many platforms have this type of clause?

ConductAtlas has identified this type of provision across 132 platforms. See the full comparison.

Is ConductAtlas affiliated with Segment?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Segment.