News & Analysis as of

Terms of Service Arbitration

Fenwick & West LLP

Ninth Circuit Reinforces Stricter Standards for Online User Agreements

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On April 15, 2025, the Ninth Circuit issued a second decision in less than two months regarding the enforceability of a “sign-in wrap agreement,” which links users to a website’s terms of service....more

Frost Brown Todd

Clicking Has Consequences: Fourth Circuit Rules Streaming Service’s Arbitration Clause in Website Registration Is Enforceable

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Proponents of arbitration received a victory in federal court this past Tuesday when the U.S. Court of Appeals for the Fourth Circuit issued its published decision in Dhruva v. CuriosityStream, Inc. ...more

Benesch

Navigating the Fine Print: Ninth Circuit Tightens Scrutiny on Digital Arbitration Agreements

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A recent Ninth Circuit decision, Chabolla v. ClassPass, Inc., underscores critical considerations for retailers with online Terms of Service / Use agreements, particularly regarding arbitration provisions and related consumer...more

Troutman Pepper Locke

Ninth Circuit Rejects Plaintiff’s Attempt to Contest Consolidation of Arbitration Claims

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On February 28, the U.S. Court of Appeals for the Ninth Circuit affirmed a district court’s denial of a petition to compel individual arbitration against Starz Entertainment, LLC. The court held that the plaintiff, who...more

Morrison & Foerster LLP - Social Media

Social Links: If the Suit Fits

Character Technologies has been hit with two lawsuits, including a wrongful death suit (among other claims), in less than two months over its popular Character.ai chatbot. The first was filed in the U.S. District Court for...more

Ladas & Parry LLP

Read Before Signing - Important lessons from recent court rulings involving problematic contracts.

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IN THREE COURT DECISIONS IN THE PAST SEVERAL MONTHS, two themes emerged: reading the contract before you sign and understanding the law that applies. In the first case, a court needed to decide which of two contracts...more

Fenwick & West LLP

Ninth Circuit Nixes Live Nation’s ‘Unconscionable’ Arbitration Agreement

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On October 28, 2024, the Ninth Circuit affirmed the district court’s ruling in Heckman v. Live Nation, finding Live Nation’s Ticketmaster arbitration agreement unconscionable and therefore unenforceable based on their terms...more

Hudson Cook, LLP

CFPB Issues Order Against a Private Dispute Resolution Platform

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On October 10, 2024, the CFPB announced that it issued a stipulation and consent order against the Company to resolve allegations that the Company violated the CFPA....more

Morrison & Foerster LLP - Social Media

Lose Your Illusion: District Court Holds That Unilateral Modification Clause Makes TOS Unenforceable

On August 8, 2024, the U.S. District Court for the Eastern District of Virginia in Lovinfosse v. Lowe’s Home Centers, LLP addressed the enforceability of an arbitration clause in Lowe’s terms of service, serving as a reminder...more

CDF Labor Law LLP

Implications of Mahram v. The Kroger Co.: A Closer Look at Arbitration Agreements

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In a recent legal dispute, Mahram v. The Kroger Co., a California Court of Appeal delivered a decision that may have implications for employment arbitration agreements. Although the case at hand involved a consumer...more

BCLP

Is Your Company Vulnerable to a Mass Arbitration Attack? What It is and How to Prevent It

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A recent trend in litigation has emerged that is causing companies to re-think conventional wisdom. Until now, it has been a widely adopted best practice for retailers and other consumer-facing companies to include mandatory...more

Carlton Fields

Ninth Circuit Holds That Arbitration Clause in “Sign-In Wrap Agreement” Is Enforceable

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The Ninth Circuit Court of Appeals recently reversed the denial of a motion to compel arbitration after concluding, contrary to the district court’s decision, that a “sign-in wrap agreement” provided conspicuous notice of...more

Mintz - Arbitration, Mediation, ADR...

Fashion Nova’s Arbitration Clause Fades Away

Online retailers routinely include arbitration clauses in the terms of service for their website, seeking to send any consumer claims to arbitration and to eliminate a consumer’s right to file a class action lawsuit....more

Lathrop GPM

California Appellate Court Rules that Customer Agreed to Franchisor’s Arbitration Requirement in “Clickwrap” Agreement

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A state appellate court in California reversed a superior court’s denial of a massage franchisor’s motion to compel arbitration. Jane Doe #1 (I.G.) v. Massage Envy Franchising, LLC, 2023 WL 8801517 (Cal. Ct. App. Dec. 20,...more

DarrowEverett LLP

As Wiretap Act Claims Abound, ‘Submarine’ Counterattack Launched

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The proliferation of class action lawsuit and arbitration claim filings under the Federal Wiretap Act and various state wiretap statutes has recently grown beyond California, as other states are now beginning to see more...more

Carlton Fields

Nevada Supreme Court Reverses Order Denying Motion to Compel Arbitration

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The Nevada Supreme Court recently reversed the denial of a motion to compel arbitration, explaining that the plaintiff’s arguments that the contract at issue was illegal were not a valid basis to deny arbitration because...more

White & Case LLP

Edition 4 of the AI Legal News Summer Roundup

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In this edition, key themes include creators and consumers seeking more control and protection over how their content is used to train AI models (whether under copyright law or privacy laws), and governments grappling with...more

Polsinelli

‘Alkutkar v. Bumble’: Securing Active Consent for Updated Terms of Service

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Overview - The District Court for the Northern District of California recently provided guidance in Alkutkar v. Bumble Inc., No. 22-CV-00422- PJH (N.D. Cal. Sept. 8, 2022), reconsideration denied, No. 22-CV-00422-PJH,...more

Ballard Spahr LLP

California federal court enforces “clickwrap” web agreement and compels arbitration of claims against Google

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Last week, a California federal court granted Google’s motion to compel arbitration of claims asserted by customers who alleged that their Fitbit watches burned their skin. The opinion in Houtchens v. Google found that the...more

Steptoe & Johnson PLLC

Pennsylvania Appellate Court Invalidates Online Arbitration Clause in Hyperlinked 'Terms and Conditions'

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The Pennsylvania Superior Court recently invalidated Uber’s use of a mandatory arbitration clause in an online registration page for customers, ruling that the arbitration clause was unenforceable because it did not clearly...more

Davis Wright Tremaine LLP

Is It Time to Rethink the Process for Amending Online Agreements?

Online agreements are often favored by providers for their flexibility and for reducing friction in the customer contracting process. A particular benefit is the ability to update these agreements by providing notice to...more

Proskauer - Minding Your Business

Florida’s High Court Clarifies that Incorporating AAA Rules into an Arbitration Provision Delegates Arbitrability to Arbitrator

When a litigant seeks to compel arbitration pursuant to the Federal Arbitration Act (“FAA”), there are two issues that must be resolved: (1) whether there is an agreement to arbitrate; and, if so, (2) whether the dispute at...more

Orrick, Herrington & Sutcliffe LLP

How Can Emerging Tech Companies Build a Business to Avoid Litigation?

Disputes with vendors, business partners, customers and employees are inevitable. However, they are not top of mind when an emerging tech company has its sights set on growth. Many contentious issues can be avoided or reduced...more

Perkins Coie

The Ninth Circuit Addresses Website Design for Enforceable Terms of Service

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Many companies use browsewrap or related sign-in agreements to present their terms of service for consumer acceptance. On April 5, 2022, the U.S. Court of Appeals for the Ninth Circuit refined the standard for enforcing terms...more

Holland & Knight LLP

Who Decides if a Dispute Is Subject to Arbitration?

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The Florida Supreme Court on March 31, 2022, found that the incorporation by reference of the American Arbitration Association (AAA) arbitration rules in Airbnb's Terms of Service constitutes clear and unmistakable evidence...more

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