Discord Adds Clause To Terms Of Service To Prevent Users From Suing It In Court

Discord, an instant messaging and Voice over Internet Protocol (VoIP) social platform changed its Terms of Service on April 15 and added a non-arbitration clause. This clause would essentially mean that US users of Discord forfeit their right to sue Discord or join a class-action lawsuit filed by other users. Instead, all disputes would be resolved through private meetings between the company and the user, failing which the matter would go to an arbitration court. As Polygon pointed out, arbitration is a private process which means that the public has no way of accessing the evidence or the results and is very expensive, which heavily privileges companies over users.

However, it is possible to opt out of the clause by emailing an opt-out notice to arbitration-opt-out@discord.com within 30 days of April 15, 2024, or creating an account, whichever is later. 

Here’s a brief summary of the whole clause: 

• Discord requires users to attempt informal resolution by emailing disputes@discordapp.com before initiating a lawsuit or arbitration.
• If informal resolution fails after 60 days, disputes must go through arbitration for U.S. residents, governed by the Federal Arbitration Act and California law.
• The arbitration process is conducted by the American Arbitration Association (AAA) and its rules.
• If the amount involved in the controversy is less than $10,000, then the arbitration will occur solely on the basis of documents submitted by both parties to the arbitrator, unless it is deemed that a hearing is necessary.
• If the amount exceeds $ 10,000, then a hearing will be held. 
• Discord will cover all costs for any claims they initiate.
• However, users must pay the first $100 filing fee for claims they initiate. Discord will cover administrative costs and the remainder of the initial filing fee for claims under $75,000. Users are responsible for all additional costs.
• The arbitrator’s decision is binding, but it cannot preclude issues/claims in disputes with non-parties.
• For “mass filings” of 30+ similar claims, a process involving bellwether proceedings and potential mediation is outlined.
• Arbitration is mandatory unless users opt-out by emailing arbitration-opt-out@discord.com within 30 days of accepting the terms or creating an account.
• Exceptions to arbitration include small claims court cases, intellectual property disputes, and copyright cases.
• A class action waiver prohibits class/representative claims unless Discord provides consent in writing.

This comes after, in February this year, the CEO of Discord, alongside those of Meta, Snap and X were subpoenaed to testify before a Senate committee hearing on online child sexual exploitation. Members of the committee called to repeal section 230 of Title 47 of the United States Code, which states that platforms hosting third-party content are not liable for what those third parties post. This may very well open Discord up for civil action for the content posted by other users.

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Also Read:

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