Web Rewards Program Sign-Up Disclosures Found to be Sufficient

In a recent class action lawsuit, an online marketing company was accused of tricking consumers into enrolling into certain membership programs. The District Court for the District of Massachusetts granted the defendants’ motion for summary judgment, reasoning that the plaintiff “cannot now show the necessary connection between the allegedly deceptive materials and her mistaken enrollment such that the defendants would be responsible for the asserted harm.” The court further held that the company’s marketing of the programs was not deceptive. The court reasoned that the on-screen disclosures were “clear and easily understandable by anyone capable of making an online purchase.” The court found it persuasive that the plaintiff had to take several affirmative steps to become a member of the programs, including typing her email address and affirmatively pressing the “Yes” button. The court also stressed the fact that the plaintiff received a confirmation screen and separate emails for each program with reminders that if she did not cancel, she would be charged automatically after the trial period ended.

TIP: This case demonstrates that having an opt-in approach with clear and understandable disclosures of all material terms can help to establish that valid online consent has been obtained.