Poshmark made a number of changes to its Terms of Service and Privacy Policy that takes effect on February 5, 2024. One of the changes it called out was the addition of a class-action waiver, which had sellers buzzing.
In an email to buyers and sellers, Poshmark listed “key updates” in the user agreement:
- Improved Navigation: Our policy structure has been upgraded with easy-to-find pages for various policies, including buyer, seller, and fee policies.
- Dispute Resolution and Arbitration: We’ve updated our dispute resolution and arbitration provision to clarify procedures on how to resolve disputes with us and to add a class action waiver.
- Posh Credits: Defined that Posh Credits refers only to non-redeemable credits and may expire with reasonable notice.
- Privacy Policy Updates: In response to evolving privacy regulations, our Privacy Policy has been updated to clarify the data we collect, how we use it, and the addition of state-specific rights. Users in California, Virginia, and Colorado will now find specific details about their rights, including the right to deletion and access.
Sellers discussed the changes on a thread on Reddit where one seller wrote:
“What this says to me is don’t sell any luxury items on their platform period. In fact don’t sell anything high value you’re not willing to lose. I’ve loved Posh since the beginning but they are really making some poor changes lately. I have COA’s and/or receipts for any designer items, but if they aren’t going to respect those or stick up for sellers in disputes what are we even paying 20% for??”
Some people were skeptical that companies could make arbitration policies stick in court (“You can always sue no matter what and you will win if you are in the right. Them putting it in TOS doesn’t wash their hands of lawsuits,” one person wrote) despite the fact arbitration policies in general are enforceable if they are crafted correctly.
You can find the User Agreement on the Poshmark website – if you use the service, be sure to review the new terms and privacy policy yourself.
