According to the Opinion, in this matter, the Plaintiff alleged that Alleghany Health Network unlawfully collected confidential health information from users to visited the Defendant’s website and then disclosed the visitor’s information to third parties in violation of federal and state law.
In response to the Complaint filed, the Defendant moved to compel Arbitration pursuant to the Arbitration Agreement appearing in the network’s Terms of Service, a link to which appeared on the Defendant’s website.
The court determined that the Arbitration Agreement was not valid because the Plaintiff did not have actual or constructive notice of the agreement.
The Defendant had contended that the continued use of the website by visitors constituted acceptance of the terms of service contained in the link on the website.
According to the Opinion, the Plaintiff denied ever seeing the terms at issue or clicking the link to the terms of the Arbitration Agreement. As such, the Plaintiff asserted that there was no valid contract because he was never aware of the Arbitration Agreement since he never read, reviewed, or opened the Terms of Service.
In ruling in favor of the Plaintiff, the court noted that the Defendant’s Terms of Service do not require or allow users to ‘signed’ the Terms of Service, thereby calling into question whether or to the Plaintiff ever saw the Terms of Service at issue. The court additionally found that the link itself to the Terms of Service was not sufficiently conspicuous.
The court also noted that the Defendant failed to have an “explicit textual notice” informing visitors to the site that the continued use of the website constituted acceptance of the terms. Here, visitors to the website had to scroll past numerous sections of content to even reach a footer that contained the link to the terms of service. Once a visitor got to that area of the website, the link at issue was one of over forty other links in the footer. As such, the court found that the link at issue and/or the Terms of Service themselves, were not reasonably conspicuous.
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Source: Article – “Arbitration Agreement Linked On Healthcare Website Isn’t Binding, Fed. Judge Rules,” By Riley Brennan of the Pennsylvania Law Weekly (Feb. 28, 2025).