Legal Definitions - opt out

Opt out refers to the act of making an affirmative choice to not participate in a particular program, agreement, or default arrangement. It means to decline involvement when participation is otherwise assumed or offered, thereby removing oneself from its scope or obligations.

• For instance, imagine a new online service that, by default, shares your usage data with third-party advertisers. However, during the sign-up process, the service clearly presents a checkbox or setting that allows you to opt out of this data sharing. By unchecking the box, you actively choose not to participate in that specific data-sharing arrangement, even though it was the default option.

• Consider an employer who introduces a new company-sponsored health and wellness program. All employees are automatically enrolled in the program unless they explicitly state their desire not to join. An employee who prefers not to participate, perhaps because they have their own fitness routine or privacy concerns, would need to formally opt out of the program by submitting a form or notifying HR, thereby declining the default enrollment.

• In some consumer contracts, such as those for cell phone services or credit cards, there might be a clause stating that any disputes will be resolved through mandatory arbitration, rather than a lawsuit in court. Often, these contracts include a specific provision allowing the customer a limited time (e.g., 30 days) to opt out of this arbitration clause. By sending a written notice within that timeframe, the customer chooses not to be bound by the arbitration requirement, preserving their right to sue in court if a dispute arises.