Arbitration

A dispute resolution method where conflicting parties submit their disagreement to a neutral third party (an arbitrator) who makes a binding decision. In privacy policies and terms of service, arbitration clauses require users to resolve disputes through arbitration rather than court litigation. These clauses are controversial because they often waive users' rights to sue in court or participate in class action lawsuits. From a privacy perspective, arbitration provisions affect how users can enforce their privacy rights and seek remedies for data breaches or privacy violations. Some jurisdictions limit or prohibit mandatory arbitration clauses, especially for consumer contracts. When including arbitration provisions, companies must ensure they're enforceable under applicable law, provide clear notice, and may need to allow opt-out. Arbitration clauses should be clearly written, explain the process, and disclose any limitations on users' legal rights.