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{{Featured| | {{Featured|Smartwool adds forced arbitration to EULA|| | ||
In March 2024, Smartwool, a company that sells socks, quietly opted all customers of their online store into a new TOS that imposed a mandatory forced arbitration clause on all customers. They did this with a mass email, automatically binding account holders unless they completed a burdensome opt-out process. | |||
Under the updated terms, consumers can no longer opt out by email. Instead, Smartwool requires that objections be submitted via USPS Priority Mail or hand delivery, an absurd requirement costing even more than First Class mail. Provisions in the updated terms give the arbitrator authority over scope and enforceability of terms, and require consumers to reimburse Smartwool for arbitration fees if a claim is deemed “frivolous.” | |||
This is a textbook example of [[Post-purchase EULA modification|post-purchase]] EULA modification designed to preempt class-action risk, and unfairly deprive customers of the right to sue. | |||
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Revision as of 00:02, 15 November 2025
In March 2024, Smartwool, a company that sells socks, quietly opted all customers of their online store into a new TOS that imposed a mandatory forced arbitration clause on all customers. They did this with a mass email, automatically binding account holders unless they completed a burdensome opt-out process.
Under the updated terms, consumers can no longer opt out by email. Instead, Smartwool requires that objections be submitted via USPS Priority Mail or hand delivery, an absurd requirement costing even more than First Class mail. Provisions in the updated terms give the arbitrator authority over scope and enforceability of terms, and require consumers to reimburse Smartwool for arbitration fees if a claim is deemed “frivolous.”
This is a textbook example of post-purchase EULA modification designed to preempt class-action risk, and unfairly deprive customers of the right to sue.
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