Cyber Monday: How to Safely Update Your eCommerce Terms of Service

Nov 27, 2017 3:37:23 PM

Cyber-Monday-Banner-1.pngWhat’s a safe way to ensure that clickwrap agreements are valid and enforceable? Learn from companies like Safeway. In 2011, Safeway quietly updated its terms and services to reflect the difference between its delivery and in-store prices. The problem? When a company updates its terms of service, it's making a new offer to its users, which requires acceptance.

What happened: For Safeway, the shopper only had to agree to the terms and services upon first registering for the service, not with every purchase. We call this a Notice of Change issue, because Safeway did not give notice or make it obvious to its users that there were new terms of service; therefore, a federal judge held that there was no acceptance of its new terms.

Takeaway: When you modify your terms of service, be sure to send your users a clear and conspicuous communication to ensure that they understand and accept the new terms.

Reference: MICHAEL RODMAN V. SAFEWAY, INC., No. 15-17390 (9th Cir. 2017)

eCommerce Tip: Watch the video below for tips on making sure your terms of service are updated and enforceable for the holiday season.

 

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Topics: e-Commerce

Shayla Pulliam

Written by Shayla Pulliam