Technology Law Rebooted Current Developments and Practical Tips

Jan 15 2010Are Your Website Terms and Conditions Enforceable?

Companies doing business online should review their site terms and conditions to confirm they will be enforceable.

A federal judge in the Eastern District of New York has held that a consumer was not bound by an arbitration provision found in a website’s terms and conditions. The judge reached this decision after noting that:

(1) the link to the terms and conditions (which was not visible unless the user scrolled down to the bottom of the screen) was not prominently displayed;

(2) the website did not prompt the consumer to review the terms and conditions; and

(3) viewing the terms and conditions was not required to effectuate the consumer’s purchase.

See Hines v Overstock.com, Inc., No. 09-cv-991, 2009 WL 2876667, 2009 U.S. Dist. LEXIS 81204 (ED NY filed September 8, 2009).