As businesses move online the way they create contracts with consumers continues to change. This ever evolving area of business law impacts not only the way businesses interact with your customers but also the way they resolve any disputes with them should they arise. This makes it extremely important for business owners and those who draft their online contracts to understand the most recent rulings regarding online contract formation. One recent California decision affects the nature of arbitration provisions in online contracts.
Savetsky v. Pre-Paid Legal Services, Inc.
This recent court decision is called Savetsky v. Pre-Paid Legal Services, Inc. The underlying lawsuit is a class action case alleging that Pre-Paid Legal Services, which did business as LegalShield, charged recurring payments for pre-paid legal services without making proper disclosures and without the the customers’ consent. LegalShield filed a motion to compel arbitration, which the court has now denied. This motion and the court’s decision regarding the motion is what is important about the case for our purposes.