Any legal disputes that do proceed through the courts must be handled in California courts, applying California law, regardless of where the user is located.
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
Requiring disputes to be litigated in California courts under California law may be inconvenient or cost-prohibitive for users located outside California, effectively limiting practical access to court-based remedies.
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 →Language now explicitly limits court jurisdiction to situations where lawsuit is permitted (referencing arbitration waiver) and specifies both state and federal courts in San Francisco County.
View full change record →Users outside California who are permitted to pursue court proceedings must do so in San Francisco County, California, which adds cost and logistical burden for non-California users seeking legal remedies.
How other platforms handle this
In the EU and EEA, the choice of Texas governing law shall not apply only where a mandatory consumer protection law explicitly prohibits such choice of law provisions.
For any claims that are not subject to arbitration...U.S. Residents: Delaware law; venue exclusively in the state or federal courts in New Castle County, Delaware
These Terms are governed by the laws of the State of California and the United States without regard to conflicts of laws provisions
"This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflict of laws rules. To the extent that any lawsuit or court proceeding is permitted hereunder, you and Square agree to submit to the personal jurisdiction of the state and federal courts located in San Francisco County, California, for the purpose of litigating all such disputes.Excerpt from Square's Terms of Service
REGULATORY LANDSCAPE: Forum selection and choice-of-law clauses are generally enforceable in commercial agreements under the FAA and California contract law, though courts have occasionally declined to enforce forum selection clauses where they would effectively deny …
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Requiring disputes to be litigated in California courts under California law may be inconvenient or cost-prohibitive for users located outside California, effectively limiting practical access to court-based remedies.
Users outside California who are permitted to pursue court proceedings must do so in San Francisco County, California, which adds cost and logistical burden for non-California users seeking legal remedies.
ConductAtlas has identified this type of provision across 267 platforms. See the full comparison.
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