Mandatory Individual Arbitration

What it is

This provision requires US users to resolve all disputes with Uber through binding individual arbitration administered by the American Arbitration Association rather than through court proceedings. Users retain a 30-day window after first accepting the terms to opt out of this requirement in writing.

Why it matters (compliance & governance perspective)

This provision establishes that disputes between US users and Uber proceed through AAA arbitration rather than litigation, covering claims arising from both current and prior use of the platform. The opt-out mechanism requires affirmative written action within 30 days of first acceptance, after which the arbitration obligation applies as written.

Consumer impact (what this means for users)

Under this clause, US users who do not opt out within 30 days are required to pursue any dispute with Uber through individual binding arbitration. The agreement requires arbitration to proceed on an individual basis, meaning users cannot bring or join class or collective claims against Uber.

What you can do

Institutional analysis (Compliance & governance intelligence)

1) REGULATORY LANDSCAPE: This provision interacts with the Federal Arbitration Act (FAA), which generally governs the enforceability of arbitration clauses in commercial contracts. The FTC has identified mandatory arbitration clauses in consumer contracts as a surveillance priority, and the CFPB has issued rules on arbitration in financial services contexts. State-level enforceability, particularly in California under McGill v. Citibank and related authority, may limit the enforceability of class action waivers for certain public injunctive relief claims. 2) GOVERNANCE EXPOSURE: High. The combination of mandatory individual arbitration and a class action waiver creates a significant procedural channeling mechanism for all consumer disputes, including claims under state consumer protection statutes. The provision's scope is broad, covering claims arising from any prior or current use of the platform. 3) JURISDICTION FLAGS: California presents heightened exposure due to judicial scrutiny of class action waivers under state consumer protection law. EU and UK users are not subject to this clause under the regional supplemental terms, as mandatory arbitration of consumer disputes is generally not enforceable under EU Directive 93/13 on unfair contract terms. Illinois, New Jersey, and New York also present elevated scrutiny risk for consumer arbitration clauses. 4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise and business account agreements should be reviewed to assess whether this arbitration clause applies to B2B relationships or only to consumer-facing terms. The clause's broad temporal scope covering claims arising from prior use may affect pending or historical dispute resolution workflows. 5) COMPLIANCE CONSIDERATIONS: Legal teams should confirm that the opt-out notice mechanism complies with applicable state disclosure requirements, that the AAA Consumer Arbitration Rules referenced in the clause are current and accessible, and that any changes to the arbitration provision are disclosed with adequate notice and a renewed opt-out opportunity as required by applicable law.

Applicable agencies

Applicable regulations

Provision details

Other risks in this policy

• Class Action and Jury Trial Waiver high
• Dynamic and Surge Pricing Authorization medium
• Cancellation and No-Show Fee Authorization medium
• User Content License medium
• Unilateral Modification of Terms medium
• Account Termination and Service Suspension medium

Related Analysis

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  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.