California Appellate Court Declines to Enforce an Arbitration Provision on a Hyperlink Through a Web Page

In Long v. Provide Commerce, Inc., a California Appellate Court recently declined to enforce an arbitration provision, which was agreed upon by a consumer through a hyperlink at the bottom of the web page. In Long, plaintiff purchased a floral arrangement from ProFlowers.com. ProFlowers is a website owned by Provide Commerce, Inc. The arrangement was not as represented on the website. Plaintiff filed a class-action lawsuit against defendant asserting claims under Consumer Protection Statutes. Defendant moved to compel arbitration pursuant to the terms of use, which were identified on a hyperlink at the bottom of each web page. Plaintiff argued that it was not bound by the provision, as it was inconspicuous. The trial court denied the petition to compel arbitration, agreeing with the plaintiff. An appellate court agreed, finding that the plaintiff did not unambiguously agree to the arbitration provision.

Shannon B. Jones, Partner, sbj@sbj-law.com