What Is Required When Consent to Mandatory Arbitration Is Sought Online?
Internet users are increasingly confronted by websites that state that continued use of the site will result in binding them to various conditions. Often this includes an agreement to submit any future disputes to arbitration.
June 20, 2022 at 11:15 AM
8 minute read
Abraham J. Gafni, Neutral, Mediator and Arbitrator with ADR Options. Courtesy photo
ADR
Internet users are increasingly confronted by websites that state that continued use of the site will result in binding them to various conditions. Often this includes an agreement to submit any future disputes to arbitration.
Recently, in Berman v. Freedom Financial Network, 30 F. 4th 849 (9th Cir. 2022), the U.S. Court of Appeals for the Ninth Circuit revisited an issue earlier addressed, asking: "Under what circumstances can the use of a website bind a consumer to a set of hyperlinked 'terms and conditions' that the consumer never saw or read?"
The matter involved various defendants, including Fluent, a digital marketing company that collects information about visitors to its websites by enticing them to provide contact information and answer survey information through gift offerings. This information is then used by Fluent in targeted marketing campaigns for its clients.
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