Fagerstrom and Wiseley v. Amazon
Andrea Fagerstrom and Allen Wiseley v. Amazon.com, Inc., No. 15-cv-96-BAS-DHB, U.S. Dist. Ct., Southern Dist. of Cal., 2015: Court agreed with Amazon and enforced Arbitration clause of agreement entered into between Amazon and Plaintiff prior to Plaintiff selling on Amazon’s website.
Andrea Fagerstrom and Allen Wiseley v. Amazon.com, Inc., No. 15-cv-96-BAS-DHB, U.S. Dist. Ct., Southern Dist. of Cal., 2015
Issue:
- The validity of an arbitration agreement included in purchases on Amazon.
Procedural background:
- Plaintiffs brought class action against Amazon for false advertising and unfair business practices
Plaintiff’s argument:
- Amazon’s “price listing” (showing retailers prices crossed out with their prices below) amounts to false and deceptive advertising because the “Amazon price” was actually the normal retail price being offered by other retailers, such as Target.com, and by the manufacturer itself.
- Arbitration Agreement with Amazon is illusory or unconscionable.
Amazon’s argument:
- Moved to compel arbitration and dismiss Plaintiffs’ claims based on the arbitration agreement (“Arbitration Agreement” or “Agreement”) Plaintiffs agreed to when they made purchases through Amazon.
- All customers making purchases through Amazon are required to complete their orders by reviewing a final checkout page and clicking a “Place your order” button located on that page. At the top of the checkout page, under the heading “Review your order,” there is a notice to customers stating that “By placing your order, you agree to Amazon.com’s privacy notice and conditions of use.” The phrases “privacy notice” and “conditions of use” (COUs) are set off in blue-color text that hyperlinks to the full text of the privacy notice and COUs, respectively. The COUs include the Arbitration Agreement.
Conclusion:
- Court granted Amazon’s motion to enforce arbitration and dismissed case.
Court Opinion
ANDREA FAGERSTROM and ALLEN WISELEY, individually
and on behalf of all other similarly situated Californians, Plaintiffs,
AMAZON.COM, INC., a Delaware corporation;
and DOES 1 through 50 inclusive, Defendants.
Case No. 15-cv-96-BAS-DHB
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA
October 20, 2015
