If you have a dispute with Shopify, you must resolve it through private arbitration rather than going to court, and you cannot join a class action lawsuit with other affected merchants.
US merchants who accept these terms are bound to resolve all disputes with Shopify through individual arbitration, eliminating access to jury trials and class action lawsuits that might otherwise hold Shopify accountable for systemic practices affecting large numbers of merchants.
How other platforms handle this
These Terms and any dispute arising out of or related to them will be governed by the laws of the State of California, without regard to its conflict of laws provisions. Any legal action or proceeding arising out of or related to these Terms must be brought exclusively in the state or federal courts...
The Services may not be used by anyone under the age of 18 without the supervision of a parent or legal guardian who agrees to be bound by these Terms. You represent and warrant that you are at least 18 years of age (or the age of legal majority under applicable law), or, if not, that you have revie...
To be eligible for PayPal's Purchase Protection program you must meet all of the following requirements: Have a PayPal account in good standing. Pay for the eligible item from your PayPal account. Attempt to contact the seller to resolve your issue directly before filing a claim through the Resoluti...
This clause means merchants give up their right to sue Shopify in court or join collective lawsuits, which are often the only practical way for individuals to challenge large corporations over smaller but widespread harms like improper fee charges or wrongful account suspensions.
REGULATORY FRAMEWORK: This provision is governed by the Federal Arbitration Act (9 U.S.C. §§1-16), which broadly preempts state law challenges to arbitration agreements. The class action waiver implicates FTC Act Section 5 (15 U.S.C. §45) where such waivers are used in conjunction with unfair or deceptive practices. EU merchants should note that mandatory arbitration clauses waiving court access may be unenforceable under EU Directive 93/13/EEC (Unfair Contract Terms Directive) and GDPR Article 79, which guarantees the right to an effective judicial remedy.
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