Keena v. Groupon

192 F.Supp.3d 630 (2016)

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Nature of the Case

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Facts

D is a web-based company that partners with retail businesses and offers the businesses' products and services for a discounted price if purchased from D's website. P purchased a voucher for massage services through D's website to be rendered by the company Mutatio Wellness. P was unable to contact Mutatio Wellness to schedule the massage. P requested a refund from D who credited her account with 'Groupon Bucks,' which can only be used to make purchases on D's website. Before purchasing, P acknowledged and accepted D's Terms of Use, including its arbitration provision, on two separate occasions. When creating membership P agreed to D's Terms by clicking a box immediately next to the words 'I agree to the Terms of Use and Privacy Statement.' The words 'Terms of Use' appeared as a prominent blue hyperlink that linked to the full version of D's Terms of Use. When purchasing the massage voucher, she was required to click a button that said 'Complete Order' in order to complete the purchase. Directly above the 'Complete Order' button was a sentence stating: 'by clicking 'Complete Order' I accept the current Terms and Conditions and Privacy Policy.' The words 'Terms and Conditions' were again a blue hyperlink that linked to Defendant's Terms of Use. The Terms of Use were an eight-page agreement that included an arbitration provision on the seventh page. It established that Illinois law, the Federal Arbitration Act and the American Arbitration Association rules would govern any disputes. It also guaranteed that D would reimburse arbitration fees up to $10,000 for non-frivolous disputes and that D would not seek attorney fees or arbitration costs for non-frivolous disputes. The arbitration agreement contained a class action waiver. P sued D alleging breach of contract, breach of the covenant of good faith and fair dealing, fraud and deceit, unjust enrichment, unfair and deceptive trade practices, fraudulent inducement, and negligence. D moved to compel arbitration or to Dismiss Pursuant to Rule 12(b)(6).