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ARTICLE · 22 APRIL 2015

Recent Cases Emphasize Clickwrap Basics

Smith Gambrell & Russell
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Following close on the heels of Savetsky, the U.S. District Court for the Central District of California in Friedman et al. v. Guthy-Renker, LLC, Case No. 2:14-CV-06009-ODW (C.D. Cal. Feb. 27, 2015), reached a similar result.

United StatesMedia, Telecoms, IT, Entertainment
Brett Lockwood
Brett Lockwood
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Two court decisions in the past couple of months, both from federal courts in California, involving arbitration clauses in clickwrap agreements make clear that the manner in which affirmative assent to website terms is sought from a site's users makes all the difference when enforceability of those terms is at issue.

In early February, the U.S. District Court for the Northern District of California held in Savetsky v. Pre-Paid Legal Services, Inc. d/b/a LegalShield, Case No. 14-03514 SC  (N.D. Cal. Feb. 12, 2015), that merely alerting a site user prior to online checkout that the user can obtain more information from links labeled "Learn More" or "More Plan Details" is insufficient to put the user on notice of the applicable terms governing the subject transaction.  After the plaintiff, Savetsky, signed up for a pre-paid legal service plan, he pursued a class action against LegalShield for certain violations of California law.  LegalShield sought to

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