Dispute resolution process disclosed

A Terms of Service that specifies governing law but says nothing about how disputes are resolved leaves users without a clear path to bring claims — and leaves you without an agreed process to defend against them. In the EU, the Online Dispute Resolution Regulation (EU-ODR-Reg-524-2013) requires that certain businesses provide an ODR platform link and dispute resolution information. In the US, without an arbitration clause, any user can file a class action lawsuit in their preferred court. Class actions in the US routinely settle for millions regardless of merit, because the cost of litigation exceeds the settlement threshold. A clear dispute resolution clause — even a simple one — substantially reduces this exposure.

Add a dispute resolution section near the governing law clause in your Terms of Service. At minimum, specify the process and forum — arbitration, small claims court, or litigation.

## Dispute Resolution

Informal Resolution First: Before filing a formal dispute, contact us at
support@example.com. We will make good faith efforts to resolve issues within 30 days.

Arbitration: If informal resolution fails, disputes will be resolved by binding
arbitration under AAA Consumer Arbitration Rules. Arbitration takes place in
[City, State]. Each party bears their own costs unless the arbitrator awards otherwise.

Small Claims Exception: Either party may bring individual claims in small claims
court within that court's jurisdictional limits.

Class Action Waiver: Disputes are resolved only on an individual basis. You
waive any right to participate in a class action or class-wide arbitration.

Arbitration clauses are legally complex — enforceability varies by jurisdiction and consumer protection law. Have a lawyer review before publishing.