‘Flash Sale’ Website Defeats Class Action Claim With Mandatory Arbitration Clause
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Gilt implemented its membership agreement using a standard mandatory clickthrough procedure with links to the actual terms. Citing Fteja v. Facebook, the court says:
The question here is whether Starke is bound by the written terms of a transaction which he did not see or read, although he was aware that there were terms which governed his purchase, that he would be taken as having agreed to them by making the purchase, and that he could read them by one or two clicks of the mouse.
Framed this way, the result is obvious:
Read original articleWhen Starke clicked “Shop Now,” he was informed that by doing so, and giving his email address, “you agree to the Terms of Membership for all Gilt Groupe sites.” Regardless of whether he actually read the contract’s terms, Starke was directed exactly where to click in order to review those terms, and his decision to click the “Shop Now” button represents his assent to them.
Tags: Facebook, Mandatory Arbitration Clause, membership agreement
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