Your online business is humming along, people are signing-up and buying stuff online, all while you assume that the business is protected by the legal terms and conditions that you are (ideally) presenting via some clickwrap agreement. Then POOF you get sued -- and not just any lawsuit -- but a dreaded class action lawsuit! You think "no problem, our terms and conditions have a class action waiver that requires arbitration."
It's more than just terms of service and privacy policies. This article not only details the latest case involving terms of service and clickwrap agreements, but provides examples of how clickwrap agreements continue to work wonders for business legal.
Website legal agreements, such as Term of Use or Terms of Service, typically need to be revised and updated from time to time. Often times, a website operator will simply publish a change to those terms without thinking through the update process. This can lead to disaster - i.e. - to the updated terms being unenforceable. Not good.
Think click wrap agreements are enforceable by just slapping some legal terms into a form? Think again!
We've covered clickwrap best practices on this blog before, and covered lots of cases where good clickwrap agreements have been found enforceable. A recent decision published in Illinois Federal Court illustrates just how tricky it can be to create a clickwrap agreement that will hold up in court (and if it doesn't hold up in court - what good is it?)
A recent case in Wisconsin Federal Court illustrates perfectly the importance of properly tracking and managing website legal agreements.
Once again, a court has held ruled that burying the link to a browsewrap agreement (in this case Terms and Conditions) in the footer of a website is an excellent way to render that browsewrap agreement meaningless and unenforceable. The ruling comes from the United States District Court, Eastern District of California. The website in questions is Job.com, a website for job-seekers and employers. Job.com, as part of its case, tries to enforce the browsewrap Terms and Conditions to assert a breach of contract claim.