Online Subscriptions Face New California Arbitration Standard

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

In Sellers v. JustAnswer LLC, for the first time, an appellate court applied the “clear and visible” standard of California Automatic Renewal Law, or ARL,[2] to the analysis of whether the consumer entered into a binding contract by accepting the online terms of use which contained an arbitration clause and a class action waiver.

This decision…

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