If you are a US user and have a dispute with Stability AI, this clause requires you to resolve it through private arbitration rather than in court, and you cannot join a class action lawsuit against the company.
This analysis describes what Stability AI'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
This provision limits users to individual arbitration proceedings, waiving the right to pursue collective or class-based legal actions and removing access to court adjudication for most disputes.
Interpretive note: Enforceability of the class action waiver and arbitration clause varies by jurisdiction; EU and UK consumers may have statutory rights that supersede these terms.
US users who accept these terms agree to resolve disputes through binding arbitration on an individual basis, which means they cannot participate in class action lawsuits against Stability AI and must each separately pursue any legal claims.
How other platforms handle this
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.
Monitoring
Stability AI has changed this document before.
Receive same-day alerts, structured change summaries, and monitoring for up to 25 platforms.
"You and Stability AI 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 be arbitrated only on an individual basis and not as a class, collective, consolidated, or representative action.— Excerpt from Stability AI's Stability AI Terms of Service
1. REGULATORY LANDSCAPE: Mandatory arbitration with class action waiver implicates FTC Act consumer protection standards and may engage Consumer Financial Protection Bureau guidance on arbitration fairness in consumer contracts. In the EU and UK, such clauses may require evaluation under EU Directive 93/13/EEC on unfair contract terms and the UK Consumer Rights Act 2015, which may render them unenforceable against consumers. The enforcing authority in the US would primarily be the American Arbitration Association and federal courts applying the Federal Arbitration Act. 2. GOVERNANCE EXPOSURE: High. Class action waivers in consumer-facing AI service agreements create significant exposure if regulators or courts in applicable jurisdictions determine the clause is procedurally unconscionable or unfair. The clause limits users to individual proceedings, which increases operational friction for dispute resolution at scale but reduces class-level litigation risk for the company. 3. JURISDICTION FLAGS: US arbitration enforceability is generally strong under the Federal Arbitration Act, but California courts have at times scrutinized unconscionability in consumer arbitration clauses. EU and UK users face particularly heightened exposure because mandatory arbitration clauses and class action waivers are frequently held unenforceable against consumers under European and UK consumer protection law. The clause's geographic scope relative to non-US users is an area requiring legal clarification. 4. CONTRACT AND VENDOR IMPLICATIONS: Enterprise and B2B customers should evaluate whether this arbitration clause conflicts with their own standard contract terms, which may include court jurisdiction clauses or dispute escalation procedures. The clause as applied to business-to-business relationships may be more routinely enforceable, but procurement teams should note the absence of carve-outs for enterprise agreements. 5. COMPLIANCE CONSIDERATIONS: Legal teams should calendar the opt-out deadline for newly onboarded users and confirm whether opt-out procedures are operationally accessible. Compliance teams with EU or UK users should assess whether the arbitration clause is presented in a manner consistent with local consumer contract transparency requirements. Any customer-facing representations about dispute resolution should be reviewed for consistency with this clause.
Full compliance analysis
Regulatory citations, enforcement risk, and due diligence action items.
Free: track 1 platform + weekly digest. Monitor: 25 platforms + same-day alerts. No credit card required.
Coinbase's User Agreement includes a mandatory arbitration clause that most users may not have reviewed. Here is what the clause states and how the opt-out process works.
561 arbitration provisions across 197 platforms. ConductAtlas tracks how dispute resolution is being restructured across the internet.
Compliance Governance Intelligence
Need to monitor specific governance provisions?
Compliance includes provision-level monitoring, governance timelines, regulatory mapping, and audit-ready analysis.
Built from archived source documents, structured governance mappings, and historical version tracking.
This provision limits users to individual arbitration proceedings, waiving the right to pursue collective or class-based legal actions and removing access to court adjudication for most disputes.
US users who accept these terms agree to resolve disputes through binding arbitration on an individual basis, which means they cannot participate in class action lawsuits against Stability AI and must each separately pursue any legal claims.
ConductAtlas has identified this type of provision across 132 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Stability AI.