Courts Approve Terms of Service-Based Arbitration Clauses for Uber and Groupon
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Online terms, and in particular arbitration clauses, have been subject to attack by plaintiffs’ lawyers. News reports have also raised the specter of over-the-top online terms that no one but the lawyers read. However, with the exception of some aberrational decisions, for the most part courts have enforced arbitration clauses, including class action waivers, in properly formed clickthrough agreements.
Cullinane v. Uber Techs.: This is a lawsuit over hidden fees or overcharges for rides to and from Boston’s Logan Airport. Plaintiffs brought a putative class action in Massachusetts state court that Uber removed to federal court under the Class Action Fairness Act. Uber brought a motion to compel arbitration.
The court walks through the account creation process and notes that:
Read original articlebelow the credit card information input box, and above the keyboard, appear the words “By creating an Uber account, you agree to the Terms of Service and Privacy Policy”. . . . If a user clicks the button that says “Terms of Service & Privacy Policy”, the Terms of Service then in effect are displayed on the phone.
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