In McGinty v. Zheng, No. A-1368-23, 2024 WL 4248446, at *1 (N.J. Super. Ct. App. Div. Sept. 20, 2024), the New Jersey Appellate Division recently upheld the enforceability of an arbitration provision contained in Uber’s Terms of Use, reaffirming the state’s strong public policy of favoring arbitration. 

The ‘McGinty’ Decision

On Jan. 18, 2021, Uber amended its Terms of Use to include a mandatory arbitration provision. The Terms of Use took the form of a “clickwrap” agreement, meaning that a consumer could not continue to use the Uber (or Uber Eats) app, except by checking a box indicating agreement with the Terms of Use. On Dec. 16, 2021, Uber updated its Terms of Use again, with the new terms also containing a mandatory arbitration provision. Plaintiff Georgia McGinty checked the box agreeing to the January 2021 Terms; however, she contended it was actually her minor daughter who checked the box agreeing to the December 2021 Terms, while placing a delivery order through Uber Eats in January 2022.