Browsewrap Unenforceable and Motion to Compel Arbitration Denied
A recent California appellate court case, Long v. Provide Commerce, Inc., found that a browsewrap agreement containing an arbitration clause failed to provide notice sufficient for assent. The case is likely to be significant in shaping wrap contract doctrine because it is the first California appellate court decision which addresses “what sort of website design elements would be necessary or sufficient to deem a browsewrap agreement valid in the absence of actual notice.”
The plaintiff, Brett Long, purchased a floral arrangement on the ProFlowers.com website. The arrangement he purchased was advertised as a “completed assembly product” but he alleged that it was delivered as a “do-it yourself kit” which required assembly. He filed a class action lawsuit on behalf of California consumers. Provide, the owner and operator of the ProFlowers.com website, moved to compel arbitration pursuant to its Terms of Use which contained an arbitration clause.
The Terms of Use were accessible via a hyperlink titled TERMS OF USE at the bottom of each webpage. The hyperlink was in light green typeface on a lime green background along with other hyperlinks in the same format. In order to complete his order, Long had to input information and click through buttons which were displayed in a white box against the website’s lime green background. At the bottom of the box was the following notice, “Your order is safe and secure.” Below the white box was a dark green bar with a hyperlink stating SITE FEEDBACK in light green typeface. Below the dark green bar, at the bottom of each “checkout flow” page were two hyperlinks, PRIVACY POLICY and TERMS OF USE in the same light green typeface as the website’s lime green background.
After placing the order, Provide sent Long an email order confirmation. The email contained a dark green bar with several hyperlinks to product offerings such as “Birthday” or “Anniversary.” Next, the email displayed a light green bar thanking the customer for his order and followed by order summary details and other related information. Following the order details were two banner advertisements and a notification regarding account management services with accompanying hyperlinks. Following that, another dark green bar stated “Our Family of Brands” and listed logos for Proflowers and 5 other companies. Next, the email contained customer service information in small grey typeset and then, in the same grey typeset, two hyperlinks titled “Privacy Policy” and “Terms”.
The California appellate court found that the Terms of Use hyperlinks were not sufficiently conspicuous to put a “reasonably prudent Internet consumer” on inquiry notice and that the Plaintiff did not manifest his unambiguous assent to be bound. The court noted that just because the Terms of Use hyperlinks were visible without scrolling was insufficient to establish an enforceable browsewrap. It referred to the “bright line rule” set forth in Nguyen v. Barnes & Noble Inc.: “(W)here a website makes its terms of use available via a conspicuous hyperlink on every page of the website but otherwise provides no notice to users nor prompts them to take any affirmative action to demonstrate assent, even close proximity of the hyperlink to relevant buttons users must click on- without more – is insufficient to give rise to constructive notice.” The court also noted that “to establish the enforceability of a browsewrap agreement, a textual notice should be required” to show continued use constitutes assent. In other words, a conspicuous hyperlink alone does not constitute reasonable notice.
This case is another in a line of cases coming out of California and the Ninth Circuit which is making a long overdue correction to contract law doctrine — doctrine which veered dangerously off course with ProCD and its ilk. As I’ve previously noted, the law in this area is still working itself out, and my guess is that other jurisdictions will start reevaluating the meaning of “assent” when it comes to wrap contracts (and start following the Ninth Circuit’s more reasonable understanding of reasonableness).
(Disclosure and fun fact: I am the recipient of a chair funded from a class action settlement involving ProFlowers).