# Dispute resolution process disclosed

- **Pattern:** `ab-001665` (`legal-pages-compliance.content-clarity.dispute-resolution`)
- **Severity:** low
- **Lifecycle:** active
- **Last modified:** 2026-04-18
- **Canonical URL:** https://auditbuffet.com/patterns/ab-001665
- **License:** CC-BY-4.0 — attribute to AuditBuffet Pattern Catalog (https://auditbuffet.com/patterns/ab-001665)

## Why it matters

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.

## Severity rationale

Low because the absence of a dispute resolution clause elevates class action risk and removes the predictability businesses need to budget for legal costs.

## Remediation

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.

```markdown
## 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.

## Detection

- **ID:** `dispute-resolution`
- **Severity:** `low`
- **What to look for:** Enumerate every relevant item. Find the dispute resolution section in the Terms of Service. It may be combined with the governing law section or standalone. Determine what process is specified: litigation (court), binding arbitration, mediation, or a tiered approach (informal resolution first, then arbitration). For arbitration clauses, check: which arbitration organization is specified (AAA, JAMS, etc.), whether individual arbitration is required (class action waiver), whether the location or seat is specified, and whether there are any carve-outs (small claims court, intellectual property disputes). Note whether a mandatory informal dispute resolution period is specified (e.g., 30 days to try to resolve before filing a claim). Also check for any cooling-off or opt-out period for the arbitration clause.
- **Pass criteria:** At least 1 of the following conditions is met. The Terms of Service specifies how disputes will be resolved — at minimum, naming the governing court or arbitration process and the jurisdiction. Users understand where and how to bring a claim against the service.
- **Fail criteria:** No dispute resolution section exists. The ToS names a governing law but says nothing about how disputes are resolved or where claims can be filed.
- **Skip (N/A) when:** No Terms of Service exists (flagged by `tos-exists` check above).
- **Detail on fail:** Specify what is missing. Example: `"Governing law clause present (Delaware) but no dispute resolution process specified. How and where users bring claims is undefined."` or `"No dispute resolution section found in Terms of Service."`.
- **Remediation:** Add a dispute resolution section. At minimum, this can be a short clause referencing the courts from the governing law section:

  ```
  ## Dispute Resolution

  Informal Resolution First: Before filing a formal dispute, you agree to contact us at
  support@example.com to attempt to resolve the issue informally. We will make good faith
  efforts to resolve disputes within 30 days.

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

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

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

  Arbitration clauses are legally complex and their enforceability varies significantly by jurisdiction and consumer protection law. Review with a lawyer before publishing.

---

## External references

- external EU-ODR-Reg-524-2013 — https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R0524

Taxons: regulatory-conformance, content-integrity

HTML version: https://auditbuffet.com/patterns/ab-001665