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In: Operations Management

As people spend more and more time online, Click-to-Accept agreements have become increasingly common. Do people...

As people spend more and more time online, Click-to-Accept agreements have become increasingly common. Do people really read these types of agreements? Is it fair to hold consumers to these terms? Find an example of a case where a court did not enforce one of these provisions and explain the result.

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Expert Solution

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It is indeed true that people pay little attention and spend less time in actually reading the fine print in the "Click to Accept" contracts. While it may not be fair to hold the consumers liable for these terms, the consumers should also understand their liability when they press the agree button. Having said that the amount of fine print and language is overwhelming and is not suited for consumer to understand properly and they should not be held for accepting it online.

Courts have generally showed a tendency to upheld the click wrap agreements and have generally refused to upheld the browse wrap agreements.

In a famous case involving AOL, a Massachusetts Court ordered that America Online (AOL)may not enforce a particular clause in its "click and accept" user agreement, and thus it was unable to move the lawsuit filed by the users of AOL version 5.0 from Massachusetts to Virginia.

This meant that software vendors should be careful in not offending the courts in the way these agreements are drafted and also the manner in which these are presented to the user for consent.


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