Online Mandatory Arbitration Provision Stops Class Action from Moving Forward
In the putative class action suit initially based on claims of price fixing, the defendant company filed a motion to compel arbitration based on a mandatory arbitration provision included in an online terms of service that the plaintiffs were required to agree to in order to use the application. The court held that the defendant company’s method for publishing its terms of service was conspicuous enough to put consumers on notice of the provisions, including a mandatory arbitration provision.
This case continues the trend of courts finding in favor of arbitration provisions and shows the importance of making terms of service, or links to terms of service, conspicuous to consumers for web-based applications.
- Related Industries
- Related Practices