Good News for Consumers Regarding Click Through Agreements and Changing Terms
Tuesday, July 31st, 2007Finally –I knew it would happen one day, and California is the one to lead the way! Kudos to the US Court of Appeals for the Ninth Circuit for realizing consumers need protection against companies who make us agree to all their terms and conditions –without any say, or negotiation of those –by clicking “Accept” before we can use a site or piece of software, as well as those who unilaterally post changes on their website after we have already agreed to certain terms. Typically, many of the agreements consumers sign have a stipulation providing that the consumer agrees to the terms and conditions posted on that company’s website, which are subject to change from time to time. Or, perhaps they use language that binds one to the “then current” terms. Then current? That could be anything they choose to make up on a whim at any given moment and stick out there on their website! For years, we’ve been at the mercy of these click through agreements and changing terms on websites, which are 99.9% of the time so very one-sided. And guess whose side? I’ll give you a hint –it’s not the consumers’.
A new and exciting precedent was set at the ruling of Joe Douglas, class action suit, against Talk America for terms and conditions posted on their website without the knowledge of the consumer. In addition, there have been rulings where the courts have chosen not to enforce one-sided mandatory arbitration clauses, such as in Gatton vs T-Mobile. Read the summary at the links below to see the direction the case law is moving on these.
http://www.gripe2ed.com/scoop/story/2007/7/30/0347/26052
http://www.groklaw.net/article.php?story=20070729165004428
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