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    Big Click-Wrap Agreement Lesson Provided By The 7th Circuit!

Big Click-Wrap Agreement Lesson Provided By The 7th Circuit!

 

Enforceable Click-Wrap Agreement

 
If your business operates a website online that uses a click-wrap agreement, you should pay close attention to the recent decision reached in the Seventh Circuit Federal Court of Appeals.  In Sgouros v. TransUnion Corp., No. 15-1371, 2016 WL 1169411 (7th Cir. March 25, 2016), the Court invalidated the arbitration clause contained on TransUnion’s Service Agreement since it did not provide users with adequate notice of the clause. The Agreement used by TransUnion on its website was a click-wrap agreement, which requires the user to click a button to affirm assent to the agreement’s terms. (As I have always told my clients, having the website user perform some affirmative action to manifest assent to terms and conditions is far safer than using a browse-wrap agreement.)
TransUnion was sued in a putative class action lawsuit by a plaintiff who purchased a “credit score package” on the TransUnion website that turned […]

5 Questions About Website Liability Operators Must Consider

 

If you operate a website, there are 5 critical questions you should be asking yourself about website liability and your website agreements.

 

1) Do you understand the laws that affect your online business or activities? You may not be aware of all the major changes to existing guidelines by the FTC, FCC and other regulatory agencies in the past few years, but there have been plenty. 

 

2) Do you trust an attorney you find on Elance or Odesk charging far below market rates that is either a “jack-of-all-trades” or fresh out of law school or a lawyer who handles speeding tickets, drafts Wills and also claims to be able to handle your website legal documents?

 

3) Do you trust some large, corporate website to basically provide a cookie-cutter approach for your website legal documents and online legal health? 

 

4) Do you believe a generic template you find on the web or a free generic […]

When Is A Website Disclaimer Effective?

A website disclaimer relates to your specific website content. These disclaimers are not generally required under any specific law. But, using the appropriate website disclaimer on your website is necessary to avoid legal liability in many instances. Website disclaimers are essentially used to: i) walk away from some responsibility or potential liability; or ii) to limit or to disclaim some association or affiliation with something or someone.
By including specific language on a website, website visitors may be restricted on what claims they can bring against the site operators. As a practical matter, a website disclaimer is often used by the courts to help determine the intent of your business practices and extent of your liability for your website content. In this sense, you should think of them as legally required. In order to draft an effective disclaimer, you need to determine what legal risks you or your business faces […]

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