The agreement requires users to waive participation in class action proceedings against Vercel, with disputes instead resolved through individual binding arbitration. The agreement states that this class action waiver is governed by the FAA and survives termination of the agreement.
This analysis describes what Vercel'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 users to proceed individually rather than as part of a class in any dispute with Vercel. The agreement explicitly states that the FAA, not state law, governs the class action waiver, which may affect enforceability challenges under state consumer protection statutes.
Interpretive note: Enforceability of class action waivers in consumer contracts varies by jurisdiction and is subject to ongoing federal and state court interpretation, particularly in California.
The updated terms establish that users are legally responsible for configuring autonomous AI features and third-party tools, must monitor their settings and output, and are bound by the autonomous actions those tools take on their behalf. Users also bear the cost of any services those third-party tools consume through the Vercel platform. The terms state that Vercel is not responsible for loss, damage, or liability arising from AI or third-party tool actions. You can manage this responsibility by carefully configuring settings, permissions, and safeguards before enabling AI features or third-party integrations, and by establishing human review processes for AI-generated output.
View change record →Under this clause, users agree not to participate in class action lawsuits or proceedings against Vercel, with all claims required to be brought individually through arbitration. The agreement states this waiver applies to all claims arising from or related to the services under any legal theory.
How other platforms handle this
If, however, this Class Action Waiver is deemed invalid or unenforceable with respect to a particular Dispute...neither you nor Chegg will be entitled to arbitration of such Dispute.
the arbitration provider, National Arbitration and Mediation ("NAM"), shall not accept or administer any demand for arbitration and shall administratively close any arbitration unless the Party bringing such demand for arbitration can certify in writing that the terms...were fully satisfied.
Neither you nor we may elect arbitration of any claims seeking only individualized relief asserted by you or us in small claims court, so long as the action remains in that court and is not removed or appealed de novo...
"IMPORTANT: PLEASE REVIEW THE MUTUAL ARBITRATION CLAUSE AND CLASS ACTION WAIVER SET FORTH BELOW CAREFULLY, AS IT WILL REQUIRE YOU (A) TO RESOLVE DISPUTES WITH VERCEL THROUGH FINAL AND BINDING ARBITRATION AND (B) TO WAIVE YOUR RIGHT TO PARTICIPATE IN CLASS ACTIONS AS SET FORTH BELOW. BY ENTERING THIS AGREEMENT, YOU EXPRESSLY ACKNOWLEDGE THAT YOU HAVE READ AND UNDERSTAND ALL OF THE TERMS OF THIS MUTUAL ARBITRATION CLAUSE AND CLASS ACTION WAIVER AS EXPLAINED BY THIS AGREEMENT.Excerpt from Vercel's Terms of Service
(1) REGULATORY LANDSCAPE: The class action waiver asserts FAA governance, which the agreement states supersedes state law on arbitrability.
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This provision requires users to proceed individually rather than as part of a class in any dispute with Vercel. The agreement explicitly states that the FAA, not state law, governs the class action waiver, which may affect enforceability challenges under state consumer protection statutes.
Under this clause, users agree not to participate in class action lawsuits or proceedings against Vercel, with all claims required to be brought individually through arbitration. The agreement states this waiver applies to all claims arising from or related to the services under any legal theory.
ConductAtlas has identified this type of provision across 205 platforms. See the full comparison.
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