Online Subscriptions Face New Calif. Arbitration Standard

By Joseph Addiego (January 24, 2022, 4:44 PM EST) -- In a case of first impression, the California Court of Appeal for the Fourth District in San Diego recently considered "under what circumstances a 'sign-in wrap' agreement … is valid and enforceable" between consumers and online companies that offer subscription-based products or services on a recurring basis.[1]

In Sellers v. JustAnswer LLC, for the first time, an appellate court applied the "clear and conspicuous" standard from California's Automatic Renewal Law, or ARL,[2] to the analysis of whether the consumer entered into a binding contract by agreeing to online terms of use that contained an arbitration provision and class action waiver.

This decision...

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