In a “Terms of Service,” What is AAA Clause for Dispute Arbitration?

Answered by Attorney Dan Roberts.

Regarding ToS: AAA clause for dispute resolution means that if someone wants to sue you, they have to do so through the AAA Arbitration process instead of using courts. Some people like it, some people don’t. There are pros and cons. I typically prefer not to do arbitration provisions because they are long and messy and people tend to ask questions about them. But like I said, some people prefer them.

AAA refers to the American Arbitration Association, a leader in alternative dispute resolution.

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