Top 9 Clickwrap Litigation Cases That Define Online Contract Enforceability

Why Clickwrap Case Law Matters

Clickwrap sometimes referred to as click-to-accept contracts are everywhere—from signing up for apps to managing NDAs and sales agreements. But not all digital agreements are enforceable. When a user disputes a contract, courts look at specific legal standards to decide whether the agreement will hold up.

This post breaks down 9 important clickwrap litigation cases, what happened, and how that defines the enforceability of clickwrap today.

⚖️ 1. Specht v. Netscape Communications Corp. (2002)

What happened: Users downloaded software without seeing or affirmatively agreeing to the terms.
Ruling: The court refused to enforce the contract—users didn’t have reasonable notice of the terms.
Takeaway: Don’t bury your terms. Visibility and clear notice are essential for enforceability.

⚖️ 2. Uber Technologies Inc. (2017 & 2018)

Meyer v. Uber Technologies Inc. (2017)

What happened: A user challenged Uber’s arbitration clause after accepting terms through a mobile app.
Ruling: The court enforced the agreement. The terms were reasonably visible and tied to a clear “I agree” button.
 Takeaway: Clickwrap works—when the design is clean, and consent is clear.

Cullinane v. Uber Technologies Inc. (2018)

What happened: Uber used a mobile sign-up flow where the “Terms of Service” link was hard to read and easy to miss.
Ruling: Agreement was not enforced. The link didn’t provide adequate notice.
Takeaway: Visual design matters. If users can't easily see the terms, you're at risk.

⚖️ 3. Nguyen v. Barnes & Noble Inc. (2014)

What happened: A user sued Barnes & Noble, but the company relied on a browsewrap agreement (terms linked at the bottom of the page, no action required).
Ruling: Not enforceable. There was no clear agreement to the terms.
Takeaway: Browsewrap ≠ Clickwrap. Courts expect active, affirmative consent.

⚖️ 4. Sgouros v. TransUnion Corp. (2016)

What happened: The terms were hidden in a scroll box that didn’t require interaction before purchase.
Ruling: Not enforceable—there was no clear manifestation of assent.
Takeaway: Don’t rely on passive displays. Users must take an active step (like clicking or checking a box).

⚖️ 5. Berman v. Freedom Financial Network (2022)

What happened: Website used a confusing layout with multiple links and unclear acceptance language.
 Ruling: Court found no valid agreement—the user didn’t have clear notice or intent to accept.
 Takeaway: Avoid clutter. Clear UX is legally defensible UX.

⚖️ 6. Fteja v. Facebook Inc. (2012)

What happened: Facebook’s sign-up flow included a hyperlink to terms below the "Sign Up" button.
Ruling: Enforced. The court said this layout gave sufficient notice.
Takeaway: You don’t need users to read the terms—just to reasonably have the opportunity to read them.

⚖️ 7. In re Zappos.com, Inc. Customer Data Security Breach Litig. (2013)

What happened: Zappos used a browsewrap link in its website footer.
Ruling: Agreement wasn’t enforceable—users didn’t affirmatively agree.
Takeaway: Footer links aren’t enough. Make the contract part of the user flow.

⚖️ 8. Long v. Provide Commerce, Inc. (2016)

What happened: A user challenged the enforceability of terms linked only at the bottom of the checkout page.
Ruling: Not enforceable—the link was not conspicuous, and there was no affirmative consent.
Takeaway: Especially in e-commerce, your checkout flow needs a clear “I agree” action tied to your terms.

⚖️ 9. Hines v. Overstock.com, Inc. (2009)

What happened: A user bought a product without ever clicking to accept terms—just a link in the footer.
Ruling: Terms were unenforceable. No clear notice = no contract.
Takeaway: Repeat after us: Link in footer ≠ clickwrap agreement.

Key Lessons for Clickwrap Flows

Across all these cases, courts consistently focus on two core questions:

1. Did the user have clear, conspicuous notice of the terms?
2. Did the user take an affirmative action to show consent?

If you can answer “yes” to both, your digital contract is far more likely to hold up.

Final Thoughts: Build Enforceable Clickwrap Flows

Whether you’re using click-to-accept flows for NDAs, sales contracts, or user agreements, enforceability isn’t automatic. These 9 court cases show how small UX details and weak legal design can cost your company big.

Ready to learn more about how ToughClicks can help you get your clickwrap enforceable in hours instead of days? Reach out to our team.

Please note that this article is for informational purposes only and should not be considered legal advice. Always consult with qualified legal professionals regarding your specific situation.