Discord has quietly updated its Terms of Service to strip U.S. users of their right to sue the company in court, forcing disputes into costly, confidential arbitration instead – but there’s a crucial catch: you can opt out of this practice if you act quickly. This move, which also bans class-action lawsuits, means any disagreements with Discord will be resolved behind closed doors, potentially favoring the company’s interests over users’ rights. If you want to keep your legal options open, you must send an opt-out email within 30 days of April 15, 2024, or when you first register your account.
Basically, arbitration is a way of handling legal disputes outside of the court system. In terms of this new clause, it means that if you have any kind of dispute to settle with Discord, you can’t sue them or join a class-action lawsuit of other affected users. (Note: this only applies if you’re a U.S. resident.)
Based on what’s now laid out in the TOS, any disputes between a user and Discord will be handled privately, in meetings with the company. If those meetings fail, the dispute goes to arbitration. This process is private, which means the public has no way to review the evidence or results, it’s expensive, and there’s no guaranteed right to an appeal process. Whatever the arbiter decides, is the end of it. The process almost objectively privileges companies, which have a lot of power and resources, over individuals.
McDonald’s also did this with its TOS last fall, and it was. really shady. Basically, if you wanted to take advantage of the McDonald’s app (say, to get free fries on Fridays), you had sign up and agree to an arbitration clause. McDonald’s already had a history of twisting public opinion around customer lawsuits. Remember the woman who sued McDonald’s because her coffee was too hot? She was scorched with third-degree burns because McDonald’s served her coffee that was 180 degrees Fahrenheit. While the victim won the lawsuit, McDonald’s’ PR apparatus turned that story into a punchline about Americans being lawsuit-happy. (Watch the documentary Hot Coffee chronicling this story – it’s great, unlike how it all played out in real life.)
You are not going to get third-degree burns from Discord. But having legal recourse in case something happens is important. It doesn’t matter if you’re thinking, “well I probably won’t sue Discord ever so who cares.” But right now there’s a group of parents who are suing Discord, alleging that predators are exploiting their kids on the platform. As legal scholars have notedfor decades, the arbitration clause is a hindrance for so much of what we don’t see coming.
So, how do you opt out? This is also noted in the fine print: Users can write an email to [email protected] within “30 days of April 15, 2024 or when you first register your Discord account, whichever is later.” The NCLC has a template that you can download, and it’s not complicated.
How might Discord’s new arbitration clause change my ability to sue them
Discord’s new arbitration clause significantly limits your ability to sue the company in court if you are a U.S. user. Instead of filing a lawsuit or joining a class-action suit, any disputes you have with Discord must first be addressed through private meetings with the company, and if unresolved, moved to binding arbitration. Arbitration is a confidential, often costly process where an arbitrator-usually a former judge-makes a final decision that both you and Discord must accept, with no right to appeal. This setup heavily favors Discord, as arbitration lacks public transparency and the collective power of class-action lawsuits is eliminated by the clause’s class action waiver.
However, you can preserve your right to sue by opting out of the arbitration clause. To do so, you must send an opt-out notice via email to [email protected] within 30 days of April 15, 2024, or within 30 days of creating your account, whichever is later. Failing to opt out means you waive your right to sue Discord in court and must resolve disputes through arbitration instead.
How does the arbitration process favor Discord over users in disputes
Discord’s arbitration process favors the company over users in several key ways:
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Confidentiality and Lack of Transparency: Arbitration proceedings are private, meaning the evidence, arguments, and outcomes are not publicly accessible. This secrecy prevents public scrutiny and limits users’ ability to learn from or leverage past cases.
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Binding and Final Decisions: The arbitrator’s ruling is final with very limited grounds for appeal, removing the user’s opportunity for further legal recourse if they disagree with the decision.
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Potential Arbitrator Bias: Arbitrators may have industry ties or incentives to favor companies, raising concerns about impartiality, whereas judges and juries in courts are more neutral.
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Class Action Waiver: Users cannot join together in class-action lawsuits, which are often the only viable way for individuals to challenge large corporations effectively. This reduces users’ collective bargaining power and discourages litigation that might hold Discord accountable.
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Costs and Burdens on Users: While Discord covers arbitration fees if it initiates the process, users who start arbitration must pay an initial filing fee (usually $100), which can be a barrier. For smaller claims, arbitration is document-based without hearings, which may disadvantage users needing to present their case fully.
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Automatic Opt-In and Burden on Users to Opt-Out: Users are automatically subjected to arbitration unless they proactively opt out within 30 days, a step many may miss, effectively stripping their right to sue without explicit consent.
Together, these factors create a dispute resolution environment that generally benefits Discord by reducing legal exposure, limiting public accountability, and making it harder and costlier for users to challenge the company in court.
