Category: Arbitration: Internet Commerce

Consumers, Internet Commerce: Ninth Circuit Holds Sign-In Wrap Did Not Result In Binding Arbitration

Judge Ryan Nelson Writes Majority Opinion And Concurring Opinion.         In Godun v. JustAnswer LLC, No. 24-2095 (9th Cir. 4/15/24) (R. Nelson, Paez, Ikuta), plaintiffs alleged that JustAnswer deceptively enrolled them in costly recurring subscriptions after paying $1–$5 for answers online. JustAnswer moved to compel arbitration under Terms of Service containing an arbitration clause, arguing […]

Enforceability Of Arbitration Agreement On Internet: 9th Circuit Agrees Terms Were Not Conspicuous Enough

"A Question Of Ever-Increasing Ubiquity In Today's E-Commerce World."         The question: did an internet user’s online activities bind her to certain terms and conditions?          The majority opinion in Katherine Chabolla v. ClassPass Inc., et al, 23:15999 (9th Cir.  2/27/25) (Mendoza, Fitzgerald; Bybee, dsst.) affirmed the district court’s decision to deny ClassPass’s motion to […]

Internet Commerce: Clickwrap Arbitration Agreement Was Unenforceable Because Seller “Undid” Notice

An Effective Clickwrap Agreement Provides Notice Of Arbitration, Which, However, Can Be Undone.         Plaintiffs, who purchased the Dexcom G6 Continuous Glucose Monitoring System to manage their diabetes, and sued the manufacturer alleging the the Dexcom G6 was defective and caused injuries. Dexcom moved to compel arbitration, based on a clickwrap agreement referring to arbitration. […]

Internet Commerce: Second District Div. 2 Rejects Invitation To Broadly Enforce Browserwrap Arbitration Agreement

The Court Also Rejected Argument That Federal Preemption Required Enforcement Of Browserwrap Arbitration Provision.         Plaintiff Brinan Weeks sued Interactive Life Forms, LLC in a putative class action, alleging that it made false claims, alleging "that he purchased a device called a Stamina Training Unit (STU) from the fleshlight.com website (the website) on or around […]

Internet Commerce: Ninth Circuit Agrees Online Ticket Purchasers Were Bound By Agreement To Arbitrate

CONSPICUOUS NOTICE.         In a putative antitrust class action, plaintiffs sued Live Nation Entertainment, Inc./Ticketmaster LLC for charging "supra-competitive fees" for tickets to events. Defendants moved successfully to compel arbitration in the trial court, and the Ninth Circuit affirmed. Oberstein et al v. Live Nation Entertainment, Inc. et al (9th Cir.  2/13/23) (Boggs, Wardlaw, Ikuta).     […]

Arbitration, Internet Commerce: Fourth District, Div. 1 Enforces Arbitration Provision In Sign-In Wrap Contract

Sign-In Wrap Contracts Are Hybrids Of Browserwrap (Hard To Enforce) And Clickwrap (Easier To Enforce) Contracts.         B.D., a minor, and his father sued the videogame company Blizzard, contending that the game Overwatch encouraged gambling. Specifically, they alleged Overwatch used “real money” to make in-game purchases of “Loot Boxes”—items that offer “randomized chances . . […]

Arbitration, Internet Commerce: Ninth Circuit Agrees Website Did Not Provide Sufficient Notice Of Agreement To Arbitrate

Clickwrap? Browserwrap? Scrollwrap? Sign-in Wrap?         When does one's use of a website result in an agreement to arbitrate? Concurring with the majority, Judge M. Miller Baker candidly observes that this is an "evolving and fact-bound area." Here, Judge Paul J. Watford, writing for the majority, and Judge Baker, concurring, agreed that the […]

Internet Commerce: 9th Circuit Rules Change-Of-Terms Provision Did Not Exempt Website Visitor From Arbitration Where Visitor Was Unaware Of The Contract Terms

Original Contract Required Arbitration Of Dispute, New Terms Exempted Consumer Claim From Arbitration, And Website Visitor Was Not Aware Of New Contract Terms.         Rachel Stover  attempted to prosecute a class action complaint against Experian, alleging that Experian had provided her with a credit reporting score represented to be useful, but essentially useless, because the […]

Arbitration, FAA: Ninth Circuit Agrees That Delivery Workers In Amazon’s App-Based Delivery Program Amazon Flex Are Exempt From Arbitration

The FAA Exempts Transportation Workers Engaged In Interstate Commerce From Arbitration — What About The Amazon Delivery Person Who Brings The Package To Your Door?      Many of us trying to avoid shopping during the pandemic have become familiar with the delivery of an Amazon package to our door. The delivery workers often drive their own […]