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The agreement prohibits users from bringing or participating in class actions or representative proceedings against Stability, requiring all claims to be pursued individually. If this prohibition is found invalid or unenforceable by a court or arbitrator, the entire arbitration agreement becomes null and void.
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 establishes that claims must be brought on an individual basis only, and the severability clause ties the enforceability of the entire arbitration agreement to the validity of this prohibition. If a court invalidates the class action waiver, the arbitration clause as a whole is voided, meaning disputes would revert to court proceedings.
Under this clause, users cannot join or initiate class or representative actions against Stability arising from site use. The agreement requires individual pursuit of any claim, which as a practical matter may affect the economics of pursuing low-value disputes.
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"YOU AND WE AGREE THAT EACH OF US MAY BRING CLAIMS AGAINST THE OTHER ONLY ON AN INDIVIDUAL BASIS AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE ACTION OR PROCEEDING.Excerpt from Stability AI's Terms of Use
1. REGULATORY LANDSCAPE: The CFPB has historically scrutinized class action waivers in consumer financial contracts. The FTC may assess class action waivers under unfair or deceptive practices authority in non-financial consumer contexts. California courts have found class action waivers unenforceable in certain consumer contexts under state public policy, and the interplay between California law and the Federal Arbitration Act preemption is an active area of litigation. 2. GOVERNANCE EXPOSURE: High. The structural dependency between the class action waiver and the arbitration agreement means that successful legal challenge to the waiver in any jurisdiction could void the arbitration clause entirely, exposing Stability to class litigation in court. This is an unusual and operationally significant severability design. 3. JURISDICTION FLAGS: California, Washington, and other states have consumer protection frameworks that may limit class action waivers in certain contexts. EU and UK consumer protection regimes generally preserve consumer access to collective redress mechanisms, and this waiver may not be enforceable against EU or UK consumers under applicable local law. 4. CONTRACT AND VENDOR IMPLICATIONS: Procurement and legal teams should note the severability linkage: the class action prohibition is not severable from the arbitration agreement. Any successful challenge to this paragraph voids the entire arbitration framework, which is a material structural risk for Stability's dispute resolution design. 5. COMPLIANCE CONSIDERATIONS: Legal teams should monitor jurisdiction-specific enforcement of class action waivers and assess whether the current severability structure creates litigation exposure if challenged by users in California or EU jurisdictions. The document does not provide a mechanism for Stability to cure an invalid class action waiver without losing the entire arbitration clause.
Regulatory citations, enforcement risk, and due diligence action items.
Provision-level monitoring, governance timelines, and regulatory mapping built from archived source documents and historical version tracking.
This provision establishes that claims must be brought on an individual basis only, and the severability clause ties the enforceability of the entire arbitration agreement to the validity of this prohibition. If a court invalidates the class action waiver, the arbitration clause as a whole is voided, meaning disputes would revert to court proceedings.
Under this clause, users cannot join or initiate class or representative actions against Stability arising from site use. The agreement requires individual pursuit of any claim, which as a practical matter may affect the economics of pursuing low-value disputes.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Stability AI.