You know we love social media here at On The Case, and you might
have noticed that mandatory arbitration is a big topic for us,
too. So when we came across a new paper focusing on social media sites' use of arbitration clauses, well, we couldn't help
ourselves. If our "friends" or "followers" want to sue their
favorite Internet people connectors, we wondered, would they
find themselves in court or at their nearest arbitration
provider? Status update: the answer was surprising.
The paper, authored by Suffolk University Law School
professor Michael Rustad and colleagues, said that approximately
25 percent of the 157 social media sites reviewed include some
form of arbitration clause in their mandatory user
agreements. That percentage constitutes a "greater incidence"
than the "10 percent found in a previous study of retail
sites," according to the Rustad group. Seventeen of the
arbitration clauses reviewed made alternative dispute resolution
mandatory, the paper said, and 11 of the clauses prohibit the
users from bringing class actions. The paper kicks off its
conclusion section with a high-alert siren: Social networking
sites, it warns, are creating a "liability-free zone for
themselves in cyberspace by employing arbitration clauses
coupled with class-action waivers and other one-sided
provisions."
But wait! It turns out that the 25 percent of social media
sites that either require or allow arbitration doesn't include
the world's largest social network, Facebook, or the
of-the-moment micro-blogging site, Twitter. The terms of service
for both of these social media giants actually require users to
bring claims in state or federal court in California (Santa Clara County for Facebook, San Francisco for Twitter). Similarly, U.S. users of Foursquare must check in to a
Manhattan court to resolve their disputes. Those of you who use
LinkedIn to track colleagues can also go to court in Santa Clara, or, if your claim is for less than $10,000, you can opt
for arbitration.
So which sites do require user to commit to arbitration
either by just using the site (a "browsewrap agreement") or by
accepting the site terms via click (a "clickwrap"
agreement)? Dating site Match.com, for one. Rustad provided us
with the dispute resolution clauses his team reviewed, and Match
was the most prominent that required mandatory arbitration. That
list also included fairly well-known sites like MeetUp and
CafeMom, but it's dominated by sites that are more, um, targeted
-- VampireFreaks and WriteaPrisoner among them.
Rustad agreed that social media mandatory arbitration
clauses probably affect far fewer users than the millions who
can go to court if they have a problem with Facebook or Twitter.
Nevertheless, he argued, the takeaway from his study should be
that more Internet sites are adopting arbitration clauses, since
the percentage has more than doubled since a study of retail
sites three years ago. Rustad also noted many social media sites
bury arbitration clauses, violating the American Arbitration
Association protocol requiring that users be told in easily
comprehensible terms that they're giving up their right to sue,
and that users in the United States can be forced into venues as
far away as Hong Kong and India.
Interestingly, Rustad said his team's review of the
association's records showed that no social media claims were
resolved through arbitration. We imagine that will change in the
years to come. And, no matter what, social media-related
litigation -- a space with nearly innumerable plaintiffs and
constantly evolving privacy battles -- is a practice area to
watch.
We reached out to both Facebook and Twitter to inquire why
they chose the courts over arbitration; Facebook declined to
comment and Twitter didn't get back to us.
(Reporting by Erin Geiger Smith)
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