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US-based commercial users are required to resolve disputes with TikTok through individual binding arbitration administered by NAM under California law, and both parties waive the right to pursue class, collective, or representative actions. A 60-day informal resolution process must be completed before arbitration can be initiated.
This analysis describes what TikTok Ads'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 requires that US-based commercial users resolve all claims through individual arbitration administered by NAM, under the Federal Arbitration Act, rather than through court proceedings, and waives participation in class or collective actions. The informal resolution process, including a 60-day response period, is a contractual prerequisite to filing any legal action.
Under this clause, US-based commercial users are contractually required to pursue disputes individually through NAM arbitration rather than through court litigation, and the agreement states that both parties waive rights to class or collective action proceedings. The agreement also requires completion of an informal dispute resolution process before arbitration may be initiated.
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"PLEASE REVIEW THIS SECTION CAREFULLY, AS YOU AND TIKTOK MUTUALLY AGREE TO WAIVE OUR RESPECTIVE RIGHTS TO RESOLUTION OF DISPUTES IN A COURT OF LAW BY A JUDGE OR JURY, AND AGREE TO RESOLVE ANY CLAIM OR DISPUTE AGAINST EACH OTHER ON AN INDIVIDUAL BASIS IN ARBITRATION, EXCEPT AS EXPRESSLY OTHERWISE PROVIDED IN THIS SECTION. The parties agree that after completing the informal dispute resolution process in Section 14.2(a), any remaining dispute, controversy, or claim relating to or arising out of your access to or use of the Commercial Products under these Commercial Terms, or the existence, breach, termination, enforcement, interpretation or validity of the Commercial Terms will be resolved by binding individual arbitration, rather than by a court of law, except as otherwise provided below. By agreeing to this Arbitration Agreement, you and TikTok expressly agree not to initiate or participate in any existing or future class, collective or representative actions against the other.Excerpt from TikTok Ads's TikTok Advertising Terms
1) REGULATORY LANDSCAPE: This provision is governed by the Federal Arbitration Act, 9 U.S.C. Section 1 et seq., which the agreement explicitly identifies as controlling interpretation and enforcement. The enforceability of class action waivers in commercial arbitration agreements has been addressed by the U.S. Supreme Court under FAA preemption doctrine. State-level consumer protection rules may interact with this clause depending on the nature of the dispute and the commercial user's jurisdiction within the US. The FTC has enforcement authority over unfair or deceptive practices related to arbitration disclosures in consumer-facing contexts, though the commercial nature of this agreement may limit FTC consumer protection jurisdiction. 2) GOVERNANCE EXPOSURE: Medium. The arbitration clause is broadly drafted and applies to all Claims arising from use of Commercial Products, including those that arose before the effective date of the agreement. The carve-outs for small claims, IP injunctive relief, and public injunctive relief claims are standard. The 60-day informal resolution prerequisite creates a procedural condition precedent that, if not satisfied, could affect the timing of legal filings relative to applicable statute of limitations, though the agreement states that limitations periods are tolled during informal resolution. 3) JURISDICTION FLAGS: This provision applies exclusively to US-based users. California courts (United States District Court for the Central District of California or Los Angeles Superior Court) have exclusive jurisdiction over non-arbitrable matters. The class action waiver may face scrutiny in states with strong public policy against such waivers in certain commercial contexts, though FAA preemption generally limits state-level challenges to arbitration agreements governing interstate commerce. 4) CONTRACT AND VENDOR IMPLICATIONS: B2B procurement teams and media agencies operating as Account Holders or Permitted Users should assess whether this arbitration requirement conflicts with their own dispute resolution frameworks or client agreements. The agreement's statement that the arbitration clause applies to claims that arose before the effective date may require evaluation against existing disputes. Settlement of Indemnified Claims under Section 11 requires TikTok's written consent, which interacts with the arbitration framework. 5) COMPLIANCE CONSIDERATIONS: Legal teams should document completion of the informal dispute resolution process before initiating any arbitration or legal action. The mass filing and bellwether protocol in Section 14.2(b)(iii) creates a structured process for coordinated claims involving 100 or more similar demands, which may be relevant for industry groups or law firms managing multiple advertiser disputes. Statute of limitations tolling during informal resolution should be tracked and documented.
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This provision requires that US-based commercial users resolve all claims through individual arbitration administered by NAM, under the Federal Arbitration Act, rather than through court proceedings, and waives participation in class or collective actions. The informal resolution process, including a 60-day response period, is a contractual prerequisite to filing any legal action.
Under this clause, US-based commercial users are contractually required to pursue disputes individually through NAM arbitration rather than through court litigation, and the agreement states that both parties waive rights to class or collective action proceedings. The agreement also requires completion of an informal dispute resolution process before arbitration may be initiated.
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