First Circuit: Online Arbitration Agreement Must Be “Reasonably Communicated and Accepted”

Ruling in a class action brought against Uber Technologies, Inc., the U.S. Court of Appeals for the First Circuit recently held that the company’s arbitration clause could not be enforced because it was not “reasonably communicated” to its customers during the online contracting process. The decision is a stark reminder that great attention needs to

The Uber Problem

Uber and Taxis

The so-called “ride sharing” service Uber has grown dramatically over the last few years. The company’s business model is actually quite simple: its smartphone-based app connects drivers offering rides and passengers seeking them, passengers pay mileage-based fees through credit cards that the company keeps on file, and Uber then takes a percentage of each fare