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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!