Enforceable On-Line Terms of Service

If your company uses a browsewrap license agreement on your website, it may not be legally binding on site visitors. That’s the message from a recent case, In re Zappos.com Inc., Customer Data Security Breach Litigation, 2012 WL 4466660 (D. Nev. Sept. 27, 2012), decided in the US District Court in Nevada.

Zappos, an online retailer, used a “browsewrap agreement” on its website, wherein visitors were informed of the licensing agreement, but not required to affirmatively agree to it before entering the site or proceeding. A browsewrap agreement is one which purports to hold site visitors bound to its terms merely be using, i.e. browsing the site. Users are not required to agree to the agreement by clicking an “I Accept” button or any other means.

The Zappos Terms of Use stated, among other things, the following:

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Peter S. Bauman - Senior Commercial Litigation Attorney Callahan & Blaine, (714) 241-4444 (office) / (949) 842-1720 (mobile) | Attorney Advertising

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