"Great Fun" is a service offered by a company called
Trilegiant. Trilegiant offers certain discounts to Great Fun
members based on a monthly membership fee. Problem is, some members
didn't realize they were members until they saw the
membership fee on their credit card statement. In Schnabel v. Trilegiant Corporation &
Affinion, Inc. , Court of Appeals, 2nd Circuit
(September 2012), the court considered whether terms could be
considered enforceable if the terms were sent by
email after the formation of
the online contract.
In this case, there were online terms in the sign-up
page, but for a variety of reasons, Trilegiant couldn't
rely on these terms, and was obliged to argue that the emailed
terms were binding. Trilegiant asserted that the members
assented to an arbitration clause by signing up, and receiving the
emailed terms at a later date, and then failing to cancel their
membership during the "free trial period". The Second
Ciruit Court of Appeals took a dim
