US-based merchants give up their right to sue Shopify in court or join a class action lawsuit. Instead, any dispute must go through binding arbitration decided by a private arbitrator.
This analysis describes what Shopify'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
The clause establishes an alternative dispute resolution mechanism in place of court litigation, with specified consequences for how disputes are adjudicated and what procedural rights are relinquished. This affects the venue, forum, and structure through which disagreements between merchant and platform are resolved.
The updated terms clarify the legal identity of the Shopify entity you contract with and establish which courts have exclusive jurisdiction to resolve disputes, depending on your store's billing address. Previously, the terms specified exclusive jurisdiction by region (Ontario for US/Canada, Singapore for Asia Pacific, Ireland for EMEA and other areas). The revised structure presents this information in a table format and adds explicit language stating that disputes can only be brought in the courts listed for your region, with those courts having exclusive jurisdiction. Shopify Inc. may act as a billing agent for other Shopify entities to collect fees and remit taxes in some jurisdictions. You can review the contracting party and forum table in Section 13 to confirm which entity and courts apply to your store based on your billing address.
View change record →US merchants who experience disputes with Shopify over fees, account terminations, or service failures cannot pursue those claims in court or as part of a class action; each claim must be arbitrated individually, which may be cost-prohibitive for smaller merchants with modest losses.
How other platforms handle this
If, however, this Class Action Waiver is deemed invalid or unenforceable with respect to a particular Dispute...neither you nor Chegg will be entitled to arbitration of such Dispute.
This Arbitration Agreement shall be binding upon, and shall include any claims brought by or against any third parties, including but not limited to your spouses, heirs, third-party beneficiaries and permitted assigns...
the arbitration provider, National Arbitration and Mediation ("NAM"), shall not accept or administer any demand for arbitration and shall administratively close any arbitration unless the Party bringing such demand for arbitration can certify in writing that the terms...were fully satisfied.
"If you are a United States merchant, you and Shopify agree to resolve any disputes through final and binding arbitration, except as set forth under Exceptions to Agreement to Arbitrate below. You agree that by entering into this Agreement, you and Shopify are each waiving the right to a trial by jury or to participate in a class action. Your rights will be determined by a neutral arbitrator, not a judge or jury.Excerpt from Shopify's Terms of Service
REGULATORY LANDSCAPE: The Federal Arbitration Act (FAA) governs the enforceability of this clause in the US, and the FTC has scrutinized mandatory arbitration clauses under its unfair or deceptive practices authority.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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561 arbitration provisions across 197 platforms. ConductAtlas tracks how dispute resolution is being restructured across the internet.
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The clause establishes an alternative dispute resolution mechanism in place of court litigation, with specified consequences for how disputes are adjudicated and what procedural rights are relinquished. This affects the venue, forum, and structure through which disagreements between merchant and platform are resolved.
US merchants who experience disputes with Shopify over fees, account terminations, or service failures cannot pursue those claims in court or as part of a class action; each claim must be arbitrated individually, which may be cost-prohibitive for smaller merchants with modest losses.
ConductAtlas has identified this type of provision across 206 platforms. See the full comparison.
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