Pixel Envy

Written by Nick Heer.

Opting Out of Binding Arbitration Isn’t Just an Apple Card Thing

Apple Card’s binding arbitration clause is something I’ve written about before, but I wanted to re-up it in the wake of the broader launch of the credit card for two main reasons.

The first thing I think you should know is that, while everyone has been discussing this in the context of the Apple Card, mandatory arbitration is by no means exclusive to that product. It is increasingly likely that most of the contracts you’ve either signed or agreed to electronically have bound you to resolving disputes through arbitration rather than a lawsuit.1 What’s worse, these clauses must be opted out of within a specified time frame from when the agreement became active. For Apple’s credit card, it’s within ninety days (PDF), while American Express gives new cardholders just forty-five days (PDF) to maintain their right to file a class action suit.

It’s not just payment card companies that include an arbitration provision. I found binding arbitration clauses in the terms and conditions documents of various internet service providers, cell carriers, eyewear companies, consumer electronics companies, and subscription boxes for clothing, grooming products, and food. That’s right: food subscriptions have a mandatory arbitration clause. And if you’re a HelloFresh customer and you’d like to retain your right to join a class action lawsuit, you’d have to opt out by mailing a letter to the company within sixty days of agreeing to their terms — which, of course, you had to do when you signed up.

In fact, most of the time, you’ll have to physically mail something to these companies; you usually cannot opt out electronically. Buy some stamps. But, while it may be easier to opt out of the Apple Card arbitration agreement than most others, it does have a caveat, and that’s the second thing I wanted to make note of.

Barbara Krasnoff, the Verge:

[A] couple of readers have reported that if you opt out of the arbitration agreement using Messages, you will not get any type of confirmation. Instead, the representative at the other end of the line will recommend that you take screenshots of your conversation. Needless to say, until the company changes that policy, screenshots are an excellent idea — just in case.

Make sure you keep a record of this conversation in a safe place. Chances are, you’ll never need to use it; but, if you do, it will be for a very good reason and you won’t want to have lost this admittedly minimal documentation.

Update: As Lawrence Velázquez points out, most companies do not provide confirmation of your request to opt out of binding arbitration. Keep a paper trail as best you can.


  1. I think the Economic Policy Institute’s report on mandatory arbitration is a well-rounded explanation of why this is often highly beneficial to companies at huge loss to consumers and employees. ↩︎