April 6, 2016
On March 25, the Seventh Circuit Court of Appeals issued a decision in Sgouros v. TransUnion Corp. in which the appeals court rejected TransUnion’s effort to compel arbitration of a putative class action. The appeals court found that no agreement to arbitrate had been formed because the plaintiff was not given notice that his claims against TransUnion might be subject to arbitration. The decision is notable because it offers important lessons to businesses everywhere in the still-emerging area of e-commerce law, and shows how a simple change in website copy would have resulted in individual arbitration, not class action litigation. It bucks the recent string of high-profile victories by defendants seeking arbitration of consumer class action claims.

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