Clickwrap Agreements

News & Analysis as of

Employees Bound by Non-Compete Agreement When They Clicked “Accept” to a Bonus on Intranet

Two employees who clicked “accept” on an online form in order to receive a bonus were bound by additional language that included an agreement to not compete in the future. Messrs. Lynch and Halpin worked in sales for ADP, and...more

Click Here — 3rd Circuit Enforces Restrictive Covenants Tied to Electronic Acceptance of Stock Award

On February 7, 2017, the Third Circuit affirmed a partial preliminary injunction order barring two former ADP employees from soliciting customers for their new employer for one year. This decision is notable as it affirmed...more

[Event] A Nuts-and-Bolts Conversation About Terms of Use for Websites, Software and Contracts - March 2nd, Seattle, WA

BakerHostetler invites you to join us for a one hour complimentary seminar (followed by Q&A) offering practical considerations for managing risk and liability in online and other contracts. Our session will cover trending...more

Know Where Your Student Data is Going!

As we move into the second half of the school year, we want to remind districts and charter schools of the importance of securing and protecting student data. Educators use and share student data in dynamic ways that improve...more

Terms And Conditions For Your App: 6 Key Considerations

For corporations, the mobile app is today’s website. Back in the late 1990s, no self-respecting company, no matter how stodgy and old-fashioned, wanted to be without a website. Originally published in Law360,...more

Website Design Implicated in Two Rulings on Enforceability of Online Terms – Highlights the Importance of Legal Review of Design...

This past summer, we wrote about two instances in which courts refused to enforce website terms presented in browsewrap agreements. As we noted, clickthrough agreements are generally more likely to be found to be enforced. ...more

Socially Aware: The Social Media Law Update Volume 7, Issue 6

Commercializing user-Generated Content: Five risk reduction strategies - We’re in the midst of a seismic shift in how companies interact with user-generated content (UGC). For years, companies were happy simply to...more

“Yes, I Agree”: With a Click, Uber Drivers Can Waive Right To Bring Class Action Suits

Recently, in a major win for employers and companies that transact business on the internet, the Ninth Circuit upheld the use of arbitration class-action waivers in so-called clickwrap agreements. These types of agreements...more

Court Upholds Enforceability of “Clickwrap” Employee Agreement

As we have previously discussed, if you want your electronic contracts to be enforceable, it is a best practice to require the counterparty to affirmatively accept the contract by checking a box or clicking a button. A recent...more

Second Circuit: Placing Order Online Did Not Bind Customer to Amazon’s Arbitration Provision

In an important decision underscoring the challenges faced by retailers and others in enforcing online arbitration agreements with their customers, the U.S. Court of Appeals for the Second Circuit has reversed a district...more

Court: Web Registration Did Not Establish User Assent to Arbitration Agreement

Perhaps overshadowed in the raging battle over the Consumer Financial Protection Bureau's proposal to ban the use of class action waivers in consumer arbitration agreements involving consumer financial products or services is...more

SDNY Refuses to Enforce Uber’s Online “Sign-In-Wrap” Terms, Arbitration Provision and Jury Waiver Clause

On July 29, 2016, the Southern District of New York, in Meyer v. Kalanick, refused to enforce mandatory arbitration and jury waiver provisions against a putative class of Uber consumers. In a lengthy and strongly worded...more

Pokémon Go and the Evolving Arena of Clickwrap Enforcement Against Children

According to the official Pokémon website, “kids all over the world have been discovering the enchanting world of Pokémon [for over 15 years].” Not surprisingly, many of us who used to be kids in the 15+ years are playing...more

Federal Court Decision Provides Useful Guidance to Companies Offering Products and Services Pursuant to Online Terms of Use

On July 29, 2016, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York issued an opinion and order in Meyer v. Kalanick, denying Uber Technologies' motion to compel arbitration of a consumer's...more

Court Denies Uber Motion to Compel Arbitration of Class Antitrust Claims Because Mobile App’s Terms of Service Were Inconspicuous

Late last week, influential federal judge Jed Rakoff of the Southern District of New York denied a motion to compel arbitration of an antitrust class action complaint pending against ride-hailing pioneer Uber Technologies....more

Browsewrap Agreement Held Unenforceable – Website Designers Take Note!

In Nghiem v Dick’s Sporting Goods, Inc., No. 16-00097 (C.D. Cal. July 5, 2016), the Central District of California held browsewrap terms to be unenforceable because the hyperlink to the terms was “sandwiched” between two...more

Eleventh Circuit: No Arbitration Because Bank Failed to Prove Existence of Arbitration Agreement

Last week, the Eleventh Circuit refused to compel arbitration because the defendant financial institution failed to prove that its online deposit agreement actually included an arbitration clause. This decision reflects the...more

A Binding "Clickwrap Agreement" From Paper?

Consumers and businesses routinely enter into binding contracts by means of both paper agreements and online “click-through” agreements. But what happens when you face a “hybrid” contract? Can a binding contract be formed...more

Six Ways Site Design Can Potentially Render TOS Agreements Unenforceable

Our recent posts on successful legal challenges to the arbitration clauses in browsewrap and clickwrap agreements have a theme in common—even the most thorough and well-worded agreement can be rendered unenforceable by...more

Clickwrap Kryptonite: Don’t Let Site Design Undermine Your TOS

We previously covered the developing legal issues with browsewrap agreements and the importance of reviewing and updating any such agreement to ensure users are bound to the terms. In a browsewrap agreement, the user’s assent...more

How Binding Is Your Browsewrap Agreement?

Anyone who has purchased a product online or downloaded software for a computer, tablet or mobile device has likely encountered “browsewrap” and “clickwrap” agreements. Such agreements are the bread and butter of companies...more

California Court Refuses to Dismiss Biometric Privacy Suit against Facebook

The District Court for the Northern District of California recently issued what could be a very significant decision on a number of important digital law issues. These include: the enforceability of “clickwrap” as compared...more

Socially Aware: The Social Media Law Update Volume 7, Issue 3

How To Protect Your Company’s Social Media Currency - Today’s companies compete not only for dollars but also for likes, followers, views, tweets, comments and shares. “Social currency,” as some researchers call it, is...more

Clickwrap Agreement From a Paper Contract?

Can a binding contract be formed merely with a link to another set of terms? (For background on this topic, check out our earlier post What, exactly, is a browsewrap? which reviews browsewraps, clickwraps, clickthroughs,...more

Class Actions and the Continued Significance of Arbitration Agreements

The recently released Carlton Fields 2016 Class Action Survey reports that class actions are up for the first time in four years. While data privacy class actions still make up a relatively small portion of class action...more

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