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ARTICLE · 29 JULY 2019

Court Holds That Arbitration Clause In "Hybridwrap" Terms Is Unenforceable

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A federal district court in Illinois recently held in Anand v. Heath that a digital marketing company could not force a user to arbitrate because a "Continue" button on its website did not provide clear notice.

United StatesLitigation, Mediation & Arbitration

A federal district court in Illinois recently held in Anand v. Heath that a digital marketing company could not force a user to arbitrate because a "Continue" button on its website did not provide clear notice that clicking the button constituted assent to the hyperlinked terms and conditions that contained the arbitration provision.

As we have noted previously, website operators who wish to enforce their online terms against users will have a higher likelihood of success if they do two things. First, the website should display the terms to users in a conspicuous fashion. Second, and applicable here, the website should affirmatively and unambiguously require users to assent to the terms. Anand demonstrates that online agreements risk unenforceability when the terms are presented in a manner that does not make clear to users that they are agreeing to be bound.

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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