Tidbits about Click-Through Contracts

On the flip-side, most websites have extremely long “terms of use” agreements that would take too long to read when compared to the user’s limited use of the website. In fact, one estimate was that if a user read every privacy policy he was presented with in a 12 month period, it would take him in excess of 200 hours! Thus, clicking your acceptance without reading the online agreement has become a common practice. The problem, however, occurs when a dispute between the parties occurs. Your acceptance of the websites terms of use may actually result in you waiving the right to file a class action lawsuit or you may be required to resolve your disagreement via arbitration. Additionally, certain warranties are often disclaimed and the user is usually bound to certain jurisdictions or venues if they want to file a lawsuit. These types of clauses are intended to make it cost prohibitive and inconvenient for you to pursue any action against the website owner.

It is worth it to note the difference between a click-through agreement and a browse-wrap contract. The user explicitly consents to the terms of a click-through contract. A browse-wrap contract does not actually require the user to agree to its terms, but knowledgeable users know they are there. The topic of browse-wrap agreements will be covered in future blogs, so be sure to check back or contact us directly for more information.

If you have a website or mobile app, a click-through contract is the recommended method to use for helping ensure enforceability. Numerous courts have ruled that they are valid and enforceable contracts since they require the user to explicitly agree to its terms.

We also recommend that you keep an eye on the Federal Trade Commission’s efforts at standardizing mobile app terms. The FTC is working to make mobile privacy disclosures and agreements easier to read and to understand.

If you need assistance with creating a click-through contract or any other business related matter, contact the legal team at The Swenson Law Firm to schedule an initial consultation.

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