Amazon Secures Victory over Customers Unaware of Terms of Service
In the digital age, the Terms of Use (ToU) on eCommerce websites have become a cornerstone in shaping legal disputes. These ToU define the contractual obligations, rights, limitations, and dispute resolution mechanisms between platforms and their users, and they play a crucial role in determining the outcomes of legal battles. A recent case that highlights this point is Wiseley v. Amazon.com, Inc., No. 15-56799 (9th Cir. Sept. 19, 2017).
The Wiseley case revolves around the question of whether creators on YouTube are allowed to post Amazon affiliate links in video descriptions. However, the crux of the matter lies in the impact of ToU on the case's outcome. In this article, we'll explore how ToU have influenced the legal landscape of eCommerce, using the Wiseley case as a case study.
Amazon's ToU specify that Washington law governs the sale, not California law, and they contain provisions that limit Amazon's liability for third-party seller actions and product issues. They also contain dispute resolution clauses requiring mediation or arbitration before litigation. These clauses were pivotal in the Wiseley case, as they ultimately led to the plaintiffs losing the case due to Amazon's Conditions of Use, which state that shoppers cannot sue and must go to arbitration instead.
The proposed class action fell apart, and the plaintiffs were told by the Ninth Circuit to arbitrate their claims on an individual basis, similar to a recent victory of Uber over its customers. This practice is considered illegal in California under Cal. Bus. & Prof. Code § 17501.
The Wiseley case is not the only instance where ToU have influenced legal outcomes. In trademark or product-related disputes like Tiffany & Co. vs. eBay Inc., courts have examined how platform policies and user agreements affect liability for third-party actions, such as counterfeit sales. Courts have ruled that platforms like Amazon are not responsible for individual seller misconduct if they take reasonable steps to address issues once notified.
Therefore, in disputes like Wiseley v. Amazon.com, Inc., the ToU are pivotal. They often define the scope of Amazon's responsibilities and liabilities, determine if users agreed to binding arbitration or other remedies instead of court litigation, and influence court rulings on whether Amazon can be held liable for user-generated content or sales.
The impact of ToU can also be seen in other legal battles. For example, France has filed a lawsuit against Amazon for imposing unfair commercial relationships to suppliers in France. In another case, the case involving Amazon Flex drivers and their off-hours conversations monitored by Amazon on closed Facebook groups has provided insights into how companies should draft and revise their ToS and arbitration clauses.
In most cases, website ToU are legally binding contracts, presented conspicuously on the site, and as binding as a signed paper contract. It's essential for users to read and understand these ToU before engaging in any online transactions to avoid potential legal complications.
In conclusion, the Wiseley v. Amazon.com, Inc. case underscores the importance of Terms of Use in eCommerce sites. They set the contractual limits and procedures that courts use to decide platform responsibilities, often protecting the platform from direct liability for third-party actions. As eCommerce continues to grow, understanding and navigating these ToU will become increasingly crucial for both users and businesses alike.
In the realm of eCommerce, the Terms of Use (ToU) on platforms like Amazon play a decisive role in shaping legal outcomes. For instance, the Wiseley case demonstrated that Amazon's ToU can dictate the jurisdiction of sales (Washington, not California) and restrict Amazon's liability for third-party seller actions and product issues. Moreover, these ToU often incorporate dispute resolution mechanisms, such as arbitration, that can impact litigation processes.
Furthermore, understanding ToU is essential for users, as they function as legally binding contracts, much like paper contracts. Adequate comprehension of these agreements before engaging in online transactions can help avoid potential legal complications, demonstrating the crucial role ToU play in the digital business environment.
