U.S. Appeals Court Provides Guidelines for Enforceable Online Contracts
- Topics:
- Commercial Litigation
- Tags:
- Agreement,
- Defendant,
- Management,
- Plaintiff,
- Thelen Reid & Priest,
- Tools & Techniques,
- U.S. Appeals Court
- Source:
- Thelen Reid & Priest
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Overview: On October 1, 2002 the United States Court of Appeals for the Second Circuit held that an online contract was not formed where defendants placed the clickwrap agreement for downloading free software from their website below the “Download” button because plaintiffs were not given reasonable notice of the agreement terms. The case discussed in the paper involves three class actions in which plaintiffs allege their use of defendant’s SmartDownload software was, unbeknownst to them, transmitting to defendants private information about plaintiffs’ downloading of files from the Internet. Plaintiffs claim these activities are electronic surveillance and violate two federal statutes: the Electronic Communications Privacy Act (“ECPA”) and the (“CFAA”) Computer Fraud and Abuse Act. This case involves defendant’s motion to compel arbitration in accordance with the terms of the clickwrap agreement it claims plaintiffs agreed to when they downloaded the SmartDownload software.
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Format: PDF | Size: 131KB | Date: Oct 2002 | Pages: 6
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