Udemy · Udemy Terms of Use · View original document ↗

Mandatory Arbitration and Class Action Waiver

High severity High confidence Explicitdocumentlanguage Common · 113 of 325 platforms
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Document Record

What it is

If you have a legal dispute with Udemy, this clause requires you to resolve it through private arbitration rather than a public court, and you cannot join other users in a class action lawsuit.

This analysis describes what Udemy'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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

The arbitration requirement establishes a procedural mechanism for dispute resolution that operates outside the court system, with binding outcomes determined by an arbitrator rather than a judge or jury. The class action waiver prevents consolidation of individual claims into collective proceedings, which affects the structure and scale of potential dispute resolution.

Consumer impact (what this means for users)

Users who experience issues with Udemy, such as unauthorized charges, content disputes, or account terminations, must pursue individual arbitration rather than joining other affected users in a class action, potentially making small-value claims economically impractical to pursue.

What you can do

⚠️ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.
  • Opt Out of Arbitration
    Within 30 days
    Send written notice of your decision to opt out of the arbitration agreement to Udemy's legal department within 30 days of first accepting the Terms of Service. Include your name, email address associated with your account, and a clear statement that you are opting out of arbitration.

How other platforms handle this

OpenAI High

You and OpenAI agree to resolve any disputes arising out of or relating to these Terms or our Services through final and binding individual arbitration, except that either party may bring an individual claim in small claims court. You agree to waive your right to a jury trial and to participate in a...

Tinder High

If you are a U.S. user, you and Tinder 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. Unless both you and Tinder agree otherwise, the arbitrator may not consoli...

Wise High

Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof or the use of the Services (collectively, 'Disputes') will be settled by binding arbitration between you and Wise, except that each party retains...

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▸ View Original Clause Language DOCUMENT RECORD
"
You and Udemy agree that any dispute, claim, or controversy arising out of or relating to these Terms or the breach, termination, enforcement, interpretation or validity thereof or the use of the Services will be settled by binding arbitration between you and Udemy, except that each party retains the right to bring an individual action in small claims court and the right to seek injunctive or other equitable relief in a court of competent jurisdiction to prevent the actual or threatened infringement, misappropriation or violation of a party's copyrights, trademarks, trade secrets, patents, or other intellectual property rights. YOU ACKNOWLEDGE AND AGREE THAT YOU AND UDEMY ARE EACH WAIVING THE RIGHT TO A TRIAL BY JURY OR TO PARTICIPATE AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS ACTION OR REPRESENTATIVE PROCEEDING.

— Excerpt from Udemy's Udemy Terms of Use

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

(1) REGULATORY LANDSCAPE: This provision implicates the Federal Arbitration Act (FAA), which generally supports enforcement of arbitration agreements in the US, as well as FTC Act Section 5 consumer protection standards. In the EU, Directive 93/13/EEC on unfair contract terms may render mandatory pre-dispute consumer arbitration clauses unenforceable. In California, additional consumer protection limitations under the CLRA and Consumer Legal Remedies Act may restrict enforceability of arbitration clauses in specific contexts. The CFPB has historically engaged with mandatory arbitration in financial services contexts, though its rulemaking authority here is contested. (2) GOVERNANCE EXPOSURE: High. The class action waiver combined with mandatory arbitration represents a significant structural limitation on consumer legal recourse. Courts in EU member states have frequently found such clauses in consumer contracts to be unfair terms under the Unfair Contract Terms Directive, meaning EU-based enforcement of this provision may be unreliable. (3) JURISDICTION FLAGS: EU and UK consumers face the highest exposure to non-enforcement of this clause; it may be unenforceable against them under applicable consumer law. California residents have additional statutory protections that may affect enforceability in certain claim types. Illinois and New York users should also consider state-specific consumer contract protections. (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise buyers incorporating Udemy services into employee training programs should assess whether this arbitration clause applies to their institutional agreement or only to individual consumer accounts. The clause as written applies broadly to all disputes arising from 'these Terms' and 'use of the Services,' which could extend to B2B contexts depending on contract structure. (5) COMPLIANCE CONSIDERATIONS: Compliance teams should document whether the opt-out mechanism (30-day written notice) is operationally communicated to new users at onboarding. Organizations deploying Udemy for employee training may want to negotiate arbitration terms separately in enterprise agreements to preserve institutional dispute rights.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC oversees unfair or deceptive consumer practices and has historically examined mandatory arbitration clauses that limit consumer legal recourse
    File a complaint →
  • State AG
    State attorneys general, particularly in California, may have authority over consumer arbitration clauses under state consumer protection statutes
    File a complaint →

Applicable regulations

FAA
United States Federal

Provision details

Document information
Document
Udemy Terms of Use
Entity
Udemy
Document last updated
May 5, 2026
Tracking information
First tracked
May 10, 2026
Last verified
May 10, 2026
Record ID
CA-P-008488
Document ID
CA-D-00163
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
d292f331a461be318cd63d422d6ca77d5761360ac5ffdfc318f15cfbc94ef5c0
Analysis generated
May 10, 2026 07:20 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Udemy
Document: Udemy Terms of Use
Record ID: CA-P-008488
Captured: 2026-05-10 07:20:31 UTC
SHA-256: d292f331a461be31…
URL: https://conductatlas.com/platform/udemy/udemy-terms-of-use/mandatory-arbitration-and-class-action-waiver/
Accessed: May 20, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Udemy's Mandatory Arbitration and Class Action Waiver clause do?

The arbitration requirement establishes a procedural mechanism for dispute resolution that operates outside the court system, with binding outcomes determined by an arbitrator rather than a judge or jury. The class action waiver prevents consolidation of individual claims into collective proceedings, which affects the structure and scale of potential dispute resolution.

How does this clause affect you?

Users who experience issues with Udemy, such as unauthorized charges, content disputes, or account terminations, must pursue individual arbitration rather than joining other affected users in a class action, potentially making small-value claims economically impractical to pursue.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 113 platforms. See the full comparison.

Is ConductAtlas affiliated with Udemy?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Udemy.