New Media and Technology Law Blog

Category Archives: Contracts

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FTC Paid Endorser Settlement Sets Framework for Advertiser Best Practices

Teami, LLC (“Teami”), a marketer of teas and skincare products, agreed to settle FTC charges alleging that its retained social media influencers did not sufficiently disclose that they were being paid to promote Teami’s products. The FTC’s Complaint also included allegations that Teami made unsupported weight-loss and health claims about its products, an issue that … Continue Reading

Coronavirus and the “100% Work-From-Home” Scenario: Review Agreements with Vendors of Remote Access Technology

As part of the response to the outbreak of COVID-19, many organizations are working on contingency and business continuity plans that include an all-employee “work-from-home” scenario.  If it becomes necessary to implement such a plan, all employees of the organization will access the organization’s networks and systems remotely. Unfortunately, many organizations that are testing these … Continue Reading

Facebook Brings Suit against Mobile Marketing Firm for Siphoning User Data without Authorization

In continuing its push to enforce its terms and policies against developers that engage in unauthorized collection or scraping of user data, Facebook brought suit last month against mobile marketing and data analytics firm OneAudience LLC. (Facebook, Inc. v. OneAudience LLC, No. 20-01461 (N.D. Cal. Complaint filed Feb. 27, 2020)). Facebook alleges that OneAudience harvested … Continue Reading

Court Enforces Arbitration Clause in Online Terms of Service Accepted by a Minor

Epic Games, Inc. (“Epic”) is the publisher of the popular online multiplayer videogame Fortnite, released in 2017. In recent years, Fortnight has gained worldwide popularity with gamers and esports followers (culminating in July 2019 when a sixteen-year-old player won the $3 million prize for winning the Fortnite World Cup).  Players, in one version of the … Continue Reading

Web Scraping Decisions Consider Contract Cause of Action

Two recent web scraping disputes highlight some important issues regarding whether a website owner may successfully allege a breach of contract action against a commercial party that has scraped website content contrary to “clickwrap” and “browsewrap” website terms of use. In Southwest Airlines Co. v. Roundpipe, LLC, No. 18-0033 (N.D. Tex. Mar. 22, 2019), a … Continue Reading

Browsewrap Terms Enforced Due to Customer Knowledge of Existence of Terms

Last month, a California district court granted a web-based service’s motion to compel arbitration of a putative class action brought by a user whose personal information was allegedly accessed in a massive 2016 data breach that involved 339 million user accounts. (Gutierrez v. FriendFinder Networks Inc., No. 18-05918 (N.D. Cal. May 3, 2019)). While the … Continue Reading

On the Mark: Understanding the Supreme Court’s Latest Decision Regarding the Treatment of Trademark Licenses in Chapter 11

On May 20, 2019, in Mission Product Holdings, Inc. v. Tempnology, LLC, 587 U.S. ___ (2019), the Supreme Court resolved an area of ongoing concern for parties to trademark licenses. The court addressed a circuit split on whether a trademark licensee may continue to use a trademark for the term of the license, after the … Continue Reading

CFAA Claim Dismissed in Scraping Suit, While Contract Claim Survives

This month, an Illinois district court considered another in the series of web scraping disputes that have been working their way through our courts.  In this dispute, CouponCabin, Inc. v. PriceTrace, LLC, No. 18-7525 (N.D. Ill. Apr. 11, 2019), CouponCabin alleged that a competitor, PriceTrace, scraped coupon codes from CouponCabin’s website without authorization and displayed … Continue Reading

Digital Currency App’s Electronic User Agreement Held Enforceable

In a recent blog post, we wrote about how the Second Circuit found the arbitration clause in a web service’s terms and conditions unenforceable because the user did not have reasonable notice of the terms that were communicated via a hyperlink in a post-sale email. In contrast, a New York district court recently upheld an … Continue Reading

Notice of Terms via Buried Link within a Post-Sale Email Unenforceable

In Starke v. SquareTrade, Inc., No. 17-2474, 2019 WL 149628 (2d Cir. Jan. 10, 2019), the Second Circuit affirmed a ruling that denied a web service’s motion to compel arbitration, finding that the user did not have reasonable notice of the arbitration provision contained in the terms and conditions that were communicated via a hyperlink … Continue Reading

City Attorney of Los Angeles Sues Popular Weather App Claiming Deceptive Collection and Sharing of Geolocation Data

Yesterday, Los Angeles City Attorney Mike Feuer filed an unfair competition lawsuit on behalf of the People of the State of California against the operator of the popular Weather Channel app (“TWC app”) for allegedly failing to conspicuously disclose to users that the TWC app collects and shares users’ mobile geolocation data. (People v. TWC … Continue Reading

Locational Tracking on iOS and Android Devices: Check the Platform’s Rules!

This post discusses some of the contractual requirements imposed by Apple and Google regarding the collection and sharing of locational information.  What consents, if any, do Apple and Google require that app publishers obtain before collecting and using locational information?  This is a question that is being asked with increasing frequency.  In fact, a regular … Continue Reading

“Cyberattack” Campaign That Purportedly Flooded YouTube Channel with “Dislikes” Not a CFAA Violation

A recent dispute between an advertiser AXTS Inc. (“AXTS”) and a video production company GY6vids (“GY6”) produced an interesting issue involving the federal Computer Fraud and Abuse Act (CFAA) – that is, whether an entity that allegedly overloaded another company’s YouTube channel content with a flood of “dislikes” following a contractual dispute is liable under … Continue Reading

Common Software Licensing Language at Issue in IP Dispute

Licensors of software typically utilize software license agreements providing for their ownership of the licensed software and related IP, as well as restrictions barring licensees from reverse engineering the code at issue.  The scope of protection, of course, depends on the final language of the licensing agreement and disputes can arise when licensees decide to … Continue Reading

Site Cannot Compel Arbitration Based upon Later-Amended Terms without Showing Adequate User Notification of Change

A D.C. district court ruled that an eBay user did not assent to a later-added arbitration clause to the user agreement by virtue of a provision that stated eBay could amend the agreement at any time, as the user may not have received sufficient notice of the amendment. (Daniel v. eBay, Inc., No. 15-1294 (D.D.C. … Continue Reading

CFAA and Breach of Contract Claims Dismissed in Website Data Scraping Suit

UPDATE: On November 1, 2018, the court dismissed the plaintiff’s amended complaint (which apparently dropped the CFAA claim and asserted Lanham Act and DMCA claims).  Specifically, the plaintiff asserted, among other things, that defendant removed the copyright management information (CMI) from plaintiff’s listings and website source code. The court ruled that plaintiff failed to show … Continue Reading

New York State Court Declines to Compel Arbitration, Cites Purported Ambiguities in Mobile Contracting Process

Courts are increasingly taking a magnifying glass to electronic contracting processes, particularly how the presentation of the terms of service and call to action are displayed.  As such, companies might take a second look at their own user registration and e-commerce purchase processes to ensure they offer reasonably conspicuous notice of the existence of contract … Continue Reading

No Liability for Self-Publishing Platforms over Author’s Use of Unauthorized Cover Photo

In a brief, unpublished opinion, the Sixth Circuit affirmed the dismissal of right of publicity and privacy claims against a host of self-publishing platforms and service providers for distributing an erotic (and purported “less than tasteful”) book whose cover contained an unauthorized copy of the plaintiffs’ engagement photo because the plaintiffs failed to plead more … Continue Reading

Ninth Circuit Rejects Claim That Amazon’s Terms and Conditions Are an Unconscionable Contract

In an unpublished opinion, the Ninth Circuit affirmed a lower court’s ruling that had sent a putative class action against Amazon over its pricing practices to arbitration, as per Amazon’s terms of service. (Wiseley v. Amazon.com, Inc., No. 15-56799 (9th Cir. Sept. 19, 2017) (unpublished)).  In finding that Amazon’s “Conditions of Use” were not unconscionable … Continue Reading

Online Vacation Rental Marketplace Sends Claims Packing with Carefully Drafted Terms

UPDATE:  Last month, the First Circuit affirmed the dismissal of the action, holding that there was no language in Homeaway’s “Basic Rental Guarantee” that makes any representation or warranty that Homeaway pre-screened listings before they were posted, as the document, at that time, simply established a process for obtaining a refund of up to $1000 … Continue Reading

Second Circuit Upholds Uber’s Mobile Contracting Process, Establishing Template for Mobile Online Contracting

In recent years, courts have issued varying rulings as to whether online or mobile users adequately consented to user agreements or terms of service when completing an online purchase or registering for a service.  In each case, judges have examined the facts closely, particularly the user interface that presents the terms to the user before … Continue Reading

Craigslist Garners $60 Million Judgment against Radpad in Scraping Dispute

For years, craigslist has aggressively used technological and legal methods to prevent unauthorized parties from violating its terms of use by scraping, linking to or accessing user postings for their own commercial purposes.  In its latest judicial victory, on April 13, 2017, craigslist obtained a $60.5 million judgment against Radpad on various claims relating to … Continue Reading

Website Design Implicated in Two Rulings on Enforceability of Online Terms – Highlights the Importance of Legal Review of Design Decisions

This past summer, we wrote about two instances in which courts refused to enforce website terms presented in browsewrap agreements.  As we noted, clickthrough agreements are generally more likely to be found to be enforced.  However, even the enforceability of clickthrough agreements is going to depend, in part, on how the user experience leading to … Continue Reading
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