What Does “Class Action Waiver” Mean in a Contract?
A provision where you agree to bring claims only individually, not as part of a class action or representative proceeding.
Detailed Explanation
Class action waivers prevent you from joining other similarly affected people in a lawsuit. Each person must bring claims individually, which may not be economical for small damages.
These waivers are common in consumer and employment arbitration clauses. They're controversial because they can effectively eliminate remedies for widespread small-value harms.
Example in a Contract
“You agree that any claims will be brought solely in your individual capacity, and not as a plaintiff or class member in any purported class, collective, or representative proceeding.”
Why It Matters
If you're harmed for $50, you probably won't sue individually—it's not worth the cost. Class actions make such claims viable by aggregating them. Waiving this right may leave you without practical recourse for small-value harms.
Related Terms
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