If you have a dispute with Square, you generally must resolve it through individual arbitration rather than through the courts or as part of a group lawsuit. This means you give up the right to sue Square in court or join a class action.
This analysis describes what Square'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 class action waiver means that if many users experience the same problem with Square, each person must pursue their complaint individually rather than collectively, which can make it economically impractical to pursue smaller claims.
Interpretive note: Enforceability of class action waivers varies by jurisdiction and has been subject to ongoing judicial and regulatory scrutiny, particularly in California.
Two separate high-severity provisions (Mandatory Binding Arbitration and Class Action Waiver) were consolidated into a single provision with explicit JAMS administration and enhanced language restricting individual claims.
View full change record →Users who agree to these terms give up their right to take Square to court or participate in a class action lawsuit, and instead must resolve disputes through individual arbitration, which is typically a private process administered by a neutral arbitrator rather than a judge.
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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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"Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration before one arbitrator. The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures. YOU AND SQUARE AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING.— Excerpt from Square's Square Terms of Service
REGULATORY LANDSCAPE: The Federal Arbitration Act governs the enforceability of this clause in most U.S. jurisdictions. The CFPB has historically scrutinized mandatory arbitration and class action waivers in consumer financial services contracts; while a prior CFPB rule that would have restricted such clauses was overturned by Congress in 2017, regulatory posture in this area may evolve. The FTC retains authority over unfair or deceptive practices that could interact with how this clause is disclosed and implemented. GOVERNANCE EXPOSURE: High. Mandatory arbitration combined with a class action waiver is one of the most litigated provision types in consumer and small-business financial services agreements. Courts in California and other jurisdictions have periodically declined to enforce such waivers, particularly where they are found unconscionable or insufficiently disclosed, though outcomes are fact-specific and jurisdiction-dependent. JURISDICTION FLAGS: California courts have the most active track record of scrutinizing class action waivers in consumer contracts. EU users may have rights under applicable consumer protection directives that override arbitration clauses, making enforcement of this provision against EU residents uncertain. The agreement designates California law as governing, which creates additional complexity regarding enforceability against non-California users. CONTRACT AND VENDOR IMPLICATIONS: B2B procurement teams and merchants onboarding Square should flag this clause for review, particularly if their own agreements with customers include dispute resolution provisions that conflict. The clause asserts that even questions about the arbitration agreement's scope are decided by the arbitrator, not a court, which further limits judicial oversight. COMPLIANCE CONSIDERATIONS: Legal teams should determine within the 30-day opt-out window whether the organization wishes to preserve its right to court-based dispute resolution. Compliance teams should document the opt-out decision and maintain records of the notice sent. Organizations with operations in the EU or UK should assess whether this clause is compatible with applicable consumer protection law in those jurisdictions.
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The class action waiver means that if many users experience the same problem with Square, each person must pursue their complaint individually rather than collectively, which can make it economically impractical to pursue smaller claims.
Users who agree to these terms give up their right to take Square to court or participate in a class action lawsuit, and instead must resolve disputes through individual arbitration, which is typically a private process administered by a neutral arbitrator rather than a judge.
ConductAtlas has identified this type of provision across 132 platforms. See the full comparison.
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