Mandatory Arbitration Agreement

What it is

If you have a dispute with Skillshare, you agree to resolve it through private arbitration rather than in a public court, and you give up the right to join a class action lawsuit or have a jury decide your case. This applies even to disputes you may have had with Skillshare before you agreed to these Terms.

Why it matters (compliance & governance perspective)

The retroactive application of this arbitration clause, covering claims that arose before the effective date of these Terms, is operationally distinct from many platforms that limit arbitration to future disputes, and significantly narrows the legal avenues available to users with existing grievances.

Clause Stability Stable

Consumer impact (what this means for users)

This provision means that if you have a complaint against Skillshare, including one that predates your acceptance of these Terms, you will generally be required to pursue it through individual arbitration rather than a court, and you cannot join with other users in a class action to collectively address shared grievances.

What you can do

Institutional analysis (Compliance & governance intelligence)

(1) REGULATORY LANDSCAPE: Mandatory arbitration clauses are subject to scrutiny under the FTC Act as potentially unfair or deceptive, and the retroactive application of this clause may face additional challenge under state contract law doctrines of unconscionability, particularly in California under Civil Code Section 1670.5. For EU and UK users, the clause is likely unenforceable under the EU Unfair Contract Terms Directive and the UK Consumer Rights Act 2015, which prohibit clauses that deprive consumers of the right to take legal action in national courts. The relevant enforcement authorities include the FTC, state attorneys general, and EU national consumer protection bodies. (2) GOVERNANCE EXPOSURE: High. The retroactive application of the arbitration clause to claims that arose before the effective date of these Terms is the most significant governance exposure in this document. Courts in multiple US jurisdictions have declined to enforce retroactive arbitration clauses where they were found to be procedurally or substantively unconscionable, and the inclusion of a class action waiver compounds this risk by eliminating collective redress for widespread harms. (3) JURISDICTION FLAGS: EU and UK users retain court access rights that likely override this clause under mandatory consumer protection law. California courts apply heightened scrutiny to arbitration clauses in consumer contracts, particularly those that are retroactive or involve class action waivers. Users in jurisdictions with statutory small claims court carve-outs should verify whether those carve-outs are preserved in Section IX. The clause's broad retroactive scope creates heightened exposure for any user population with pre-existing claims. (4) CONTRACT AND VENDOR IMPLICATIONS: B2B customers and enterprise accounts should assess whether this arbitration clause applies to their commercial relationship or whether separate enterprise agreements govern. The clause does not appear to include an audit rights or indemnification framework specific to commercial customers, which may require separate negotiation. Procurement teams onboarding Skillshare as a vendor should flag this clause for contract review if the platform is used in contexts where dispute resolution terms need to align with internal governance standards. (5) COMPLIANCE CONSIDERATIONS: Legal teams should verify that the arbitration opt-out mechanism described in Section IX is clearly accessible, time-limited in a manner that is disclosed at account creation, and operationally implemented to capture opt-out submissions. The retroactive scope of the clause should be flagged for review against applicable state and federal case law on enforceability. For multinational deployments, a jurisdiction-specific assessment of arbitration clause enforceability is recommended, particularly for EU, UK, and Australian user populations.

Applicable agencies

Applicable regulations

Provision details

Other risks in this policy

• Class Action Waiver high
• User Content License medium
• Auto-Renewal Subscription with Payment Method Update medium
• Unilateral Terms Modification medium
• Personal Data Sharing with Teachers medium
• Account Termination for Inactivity medium

Related Analysis

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