Amber Ferrell, et al. v. SnapCommerce Holdings, Inc., et al.

Summary

The United States District Court for the Northern District of California denied Defendants’ motion to compel arbitration and administrative motion for an evidentiary hearing in a putative class action alleging violations of the Telephone Consumer Protection Act and Oklahoma Telephone Solicitation Act. The court held that Super did not demonstrate that its online notice of terms of use was reasonably conspicuous enough to establish contract formation under California law. Because the motion was resolved without reliance on disputed facts, the court also denied the request for an evidentiary hearing.

Holdings

1. Super’s website and app did not provide reasonably conspicuous notice of the Terms of Use because the hyperlink appeared in very small gray font on a white background, was placed at the bottom of the page, and was not otherwise distinguished by bolding or contrasting color.
2. Super failed to carry its burden to show that a contract to arbitrate existed because the signup page did not provide reasonably conspicuous notice of the Terms of Use.
3. An evidentiary hearing was unnecessary and was properly denied because the court resolved the motion without relying on disputed facts.

Questions Presented

1. Whether the signup interface provided reasonably conspicuous notice of Super’s Terms of Use.
2. Whether a user’s entry of a phone number and interaction with the signup page manifested mutual assent sufficient to form an agreement to arbitrate.
3. Whether an evidentiary hearing was required to resolve the motion to compel arbitration.

Disposition

other