‘Red’ Alert: After Redbox, Is It Time to Revisit Your Online Terms of Service?

‘Red’ Alert: After Redbox, Is It Time to Revisit Your Online Terms of Service?

Contracts, E-Commerce, Technology, Terms of Service
In this article, we discuss one of the more recent and interesting (or, depending on your perspective, exasperating) Federal trial court decisions looking at the enforceability of online terms of service, Wilson v. Redbox, why the case matters, key takeaways for your online business, and what it should be doing in response. A brief re-cap, Wilson, a Redbox user (amazing to think it was not that long ago that we actually went to kiosks for our movies--what a hassle!) sued the popular DVD movie rental company under the Telephone Consumer Protection Act (47 U.S.C. § 227) for continuing to send automatic text messages to her phone despite her having opted out. Redbox’s "Terms of Use" (represented by hyperlinks in both its kiosk and website checkout screens require mandatory arbitration of…
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Does California’s New Data Privacy Law Apply to My Business?

Does California’s New Data Privacy Law Apply to My Business?

Data Protection, E-Commerce, Privacy
Starting January 1, 2020, the California Consumer Privacy Act (CCPA), far and away the broadest consumer data privacy law passed by any State to date, goes into effect.   What is the CCPA? CCPA grants California "consumers" extensive rights as to how their personal information is collected, stored, and used, as well as gives them a private cause of action against businesses who violate its requirements.   For businesses (including those not even located in California) that collect or process the personal information of California consumers, CCPA includes very specific disclosure requirements for those consumers, as well as stiff statutory penalties for failure to comply.   As with the implementation of the EU's General Data Protection Regulation (GDPR) last year, CCPA is causing much hand-wringing among owners and management of…
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Is an Electronic Signature  Legally Enforceable?

Is an Electronic Signature Legally Enforceable?

Contracts, E-Commerce
It's no surprise that digital contracts and other records are becoming the norm in not only consumer-facing transactions, but especially in ones between businesses. In this post, we look at the question to what degree is an electronic or digital signature on such documents actually enforceable? Per usual, let me run through the caveats: I am only licensed to practice law in Arizona.  This article only addresses Arizona law.  If you're an e-commerce or other business utilizing digital agreements and signatures in another state or states other than Arizona, I strongly encourage you to consult the laws of those states or a lawyer licensed in those jurisdictions.  The Arizona Electronic Transactions Act In my Phoenix startup technology law practice, I have definitely noticed more and more clients who have chosen…
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5 Essential Agreements Every E-Commerce Site Should Have

5 Essential Agreements Every E-Commerce Site Should Have

Contracts, E-Commerce, Privacy, Start-Up
Founders of e-commerce businesses can often be so wrapped up in getting to market and scaling as quickly as possible that they overlook legal protection for their business. Operating any business, let alone one providing goods or services over the Internet, without important legal safeguards in place is like trying to cross the 101 Freeway every day wearing a blindfold. Could you get away with it? For awhile, perhaps. However, sooner or later, the odds will catch up--with potentially catastrophic results. In this post, we'll cover the five essential legal agreements which every e-commerce site should have. Understand that this list is merely intended to describe the most basic documents that your e-commerce site should have in place. It is not meant to be exhaustive. There are other, no less…
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