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.
The updated terms modify how arbitration disputes are resolved when 25 or more similar claims are brought against Square. Previously, Square's terms referenced 'Bellwether Arbitration procedures' under which test cases would be selected and remaining demands could proceed individually under standard rules if settlement failed. The updated framework establishes a mandatory mediation phase after initial arbitrations resolve, and requires remaining claims to proceed in batches of up to 100 rather than individually, with one arbitrator and consolidated fees per batch. This may reduce the procedural flexibility for claimants pursuing claims outside the initial test-case group, though the batch structure may reduce overall administrative costs. The terms now explicitly state that NAM shall administer batches concurrently and that parties will engage in a 'single global mediation' before batch proceedings commence.
View change record →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.
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.
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.
Neither you nor we may elect arbitration of any claims seeking only individualized relief asserted by you or us in small claims court, so long as the action remains in that court and is not removed or appealed de novo...
"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 Terms of Service
REGULATORY LANDSCAPE: The Federal Arbitration Act governs the enforceability of this clause in most U.S.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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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 205 platforms. See the full comparison.
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