Arbitrations, Class Actions, Consumer Contracts And The Internet – The Dell Case

Originally published in Blakes Bulletin on Informational Technology, August 2007

The Supreme Court of Canada recently released its decision in Dell Computer Corporation v. Union des consommateurs and Olivier Dumoulin, which has come to be known as the "Dell case". The decision offers valuable guidance on, among other issues, the legal status of clauses accessible by hyperlink in online consumer contracts, the arbitration of consumer disputes in Quebec and, importantly, whether an arbitration clause will trump a class action.

The dispute in the case arose when two Dell Computer Corporation (Dell) hand-held computer models were erroneously listed at significantly discounted prices on the company’s English-language website. Olivier Dumoulin, a Quebec resident, successfully placed an order at the discounted prices. When Dell announced it would not process