Public Justice Advocates for Consumer Rights in Online Arbitration Dispute

According to Public Justice, a recent case involves allegations that Target and Shipt advertised free or flat-rate delivery but charged California customers a mandatory $3.99 “CA Shopper Benefits Fee” late in the checkout process. The consumer filed a proposed class action, alleging that the fee violated California consumer protection laws.

Target and Shipt sought to move the dispute into arbitration, arguing that the consumer had agreed to arbitration through the companies’ online terms of service. However, the district court denied their requests, finding that the companies had not established that the consumer had received clear notice of the terms and unambiguously agreed to them.

Public Justice joined the case on appeal to represent the consumer. The Ninth Circuit sent the case back to the district court to determine whether the consumer had actually seen the account-creation, sign-in, or checkout screens presented by Target. The appeals court did not resolve the separate question of whether those screens provided sufficiently clear notice of the terms, leaving that issue open.

Online shopping is a regular part of everyday life, but consumers may not always realize when they are being asked to agree to important legal terms. The outcome of this case could help clarify what companies must demonstrate when they rely on online agreements to require individual arbitration.

These questions matter because arbitration provisions can affect consumers’ ability to pursue claims and seek accountability when they believe a company has violated the law.

At Advocate Capital, we value the important work Public Justice does to protect individual rights, hold powerful corporations accountable, and help ensure that people have a meaningful opportunity to seek justice.

Public Justice helps address legal issues that can affect far more people than those directly involved in a single case. We are proud to recognize Public Justice’s continued efforts to promote fairness, accountability, and access to justice. Visit publicjustice.net to learn more about the work Pubic Justice does. 

About Donna A. Jones

Donna Jones is the President at Advocate Capital, which became a part of Pinnacle in 2019. Ms. Jones is a member of the Board of Directors of Advocate Capital and serves as a member of the Credit Committee. Her responsibilities include education and training of Advocate Capital staff regarding civil litigation, coaching new clients on the fundamentals of Advocate’s online services, as well as its proprietary software application, AdvoTrac®, and all activities related to existing and prospective clients.