Litigation surrounding the enforceability of website terms isn’t new. Indeed, back in 2014, we blogged about the Nyugen case. Yet, courts continue to grapple with the question of what constitutes an adequate disclosure and binds website visitors to the terms and conditions of a service agreement.
Last month, the Seventh Circuit decided in Sgouros v. Transunion Corp. that an online browsewrap contract was not binding because it did not provide notice that the customer was subject to the agreement. The plaintiff had purchased a credit score from a website, but claimed that he later found out that the credit score he purchased was 100 points higher than one he later received. As a result, he filed a putative class action alleging violations of the Fair Credit Reporting Act and state deceptive business practice laws. TransUnion sought to compel arbitration based on its website terms.Continue Reading Don’t Browse Over Your Website Disclosures
Purveyors of mass-retail food products may have a new reason to rejoice this holiday season. On December 2, the U.S. District Court for the Central District of California, in Hernandez v. Chipotle Mexican Grill, Inc., quietly issued a three-page In Chambers Order denying class certification in a false advertising action challenging Chipotle’s claim that its products contain “Naturally Raised” meat. The class certification denial alone is notable given California’s famously broad consumer protection laws. Even more significant is the court’s reasoning, which seems to stem from the growing trend among federal courts of barring class certification on ascertainability grounds.