Forced arbitration with Smartwool socks: Difference between revisions

Line 1:

[[File:Smartwool Email.png|thumb|Smartwool email advising consumers of changes to arbitration agreement and process for sending USPS Priority Mail or hand delivery within 30 days.]]

On March 29, 2024, '''[[Smartwool]]''' emailed customers in their database to automatically opting them in to their new terms of use ~~that included~~ a forced arbitration clause~~. applied forced arbitration~~ to ~~their terms~~ of ~~service~~.

On March 29, 2024, '''[[Smartwool]]''' emailed customers in their database, automatically opting them in to their new terms of use. These new terms of use contained a forced arbitration clause and were unreasonably difficult to opt-out of.

==Background==

Smartwool is an American clothing company specializing in of wool clothing. The incident described in this article is a example of [[Post-purchase EULA modification| post-purchase EULA (End User License Agreement) modification]] (colloquially referred to as "EULA roofieing") that includes a revised [[Forced arbitration|forced arbitration clause]]. To illustrate the magnitude of risk posed by a clothing-related EULA, one can imagine a less responsible company accidentally including toxic dyes or coatings due to supply chain mishaps. In such a case they might avoid paying damages to the harmed consumers.

Smartwool is an American clothing company specializing in the sale of wool clothing. The incident described in this article is a example of[[Post-purchase EULA modification| post-purchase EULA (End User License Agreement) modification]] (colloquially referred to as "EULA roofieing") that includes a revised [[Forced arbitration|forced arbitration clause]]. To illustrate the magnitude of risk posed by a clothing-related EULA, one can imagine a less responsible company accidentally including toxic dyes or coatings due to supply chain mishaps. In such a case they might avoid paying damages to the harmed consumers.

This instance of post-purchase EULA modification is ~~a very good~~ example of the strategic use of asymmetry. The business delivered their opt-in in a inexpensive, unexpected, and casual nature. The consumer has to do absolutely nothing to opt-in, and ~~they~~ can ~~opt~~-in without ~~reading it~~. Opting out is difficult, tedious and relatively expensive.

This instance of post-purchase EULA modification is an example of the strategic use of asymmetry. The business delivered their opt-in notice in an inexpensive, unexpected, and casual nature. The consumer has to do absolutely nothing to opt-in, and in fact can be opted-in without having read the email at all. Opting out is difficult, tedious, and relatively expensive.

==Post-purchase EULA ~~modification~~==

==Post-purchase EULA Modification==

On March 29, 2024 Smartwool emailed a list of their account holders stating that they were opting them into [[Forced arbitration|forced arbitration]]<ref>

{{cite web

Line 31:

}}</ref>

This requirement is in itself more involved than the process of opting in ~~but, additionally~~, USPS Priority is not the First Class mail that people typically use for mailing letters. This (seemingly minor) difference in mail type is the difference between a $0.56 postcard and a $10.10 Flat Rate Envelope at the time of writing.<ref>

This requirement is in itself more involved than the process of opting in. Additionally, USPS Priority is not the First Class mail that people typically use for mailing letters. This (seemingly minor) difference in mail type is the difference between a $0.56 postcard and a $10.10 Flat Rate Envelope at the time of writing<ref>

{{cite web

|author=

Line 39:

|url-status=live

|access-date=19 Feb 2025

}}</ref>, ~~preying~~ on an individual's reasoning that the effort involved in attempting to opt-out is not worth the time or money.

}}</ref>, which preys on an individual's reasoning that the effort involved in attempting to opt-out is not worth the time or money.

===Differences ~~between pre~~-purchase and ~~post~~-purchase EULA===

===Differences Between Pre-purchase and Post-purchase EULA===

According to the EULA available before the opt-in wave of emails, the original EULA<ref>

{{cite web

Line 53:

|access-date=19 Feb 2025

}}</ref> available on Smartwool's website stated:

#A higher priority on contacting Customer Service first but, does not explicitly make it a prerequisite before arbitration.

#A higher priority on contacting Customer Service first, but does not explicitly make it a prerequisite before arbitration.

#No specification on who determines arbitrability.

#AAA rules apply and outlines fee reimbursement if the claim is under $10,000.

@@ Line 1: / Line 1: @@
 [[File:Smartwool Email.png|thumb|Smartwool email advising consumers of changes to arbitration agreement and process for sending USPS Priority Mail or hand delivery within 30 days.]]
-On March 29, 2024, '''[[Smartwool]]''' emailed customers in their database to automatically opting them in to their new terms of use that included a forced arbitration clause. applied forced arbitration to their terms of service.
+On March 29, 2024, '''[[Smartwool]]''' emailed customers in their database, automatically opting them in to their new terms of use. These new terms of use contained a forced arbitration clause and were unreasonably difficult to opt-out of.
 ==Background==
-Smartwool is an American clothing company specializing in of wool clothing. The incident described in this article is a example of [[Post-purchase EULA modification| post-purchase EULA (End User License Agreement) modification]] (colloquially referred to as "EULA roofieing") that includes a revised [[Forced arbitration|forced arbitration clause]]. To illustrate the magnitude of risk posed by a clothing-related EULA, one can imagine a less responsible company accidentally including toxic dyes or coatings due to supply chain mishaps. In such a case they might avoid paying damages to the harmed consumers.
+Smartwool is an American clothing company specializing in the sale of wool clothing. The incident described in this article is a example of[[Post-purchase EULA modification| post-purchase EULA (End User License Agreement) modification]] (colloquially referred to as "EULA roofieing") that includes a revised [[Forced arbitration|forced arbitration clause]]. To illustrate the magnitude of risk posed by a clothing-related EULA, one can imagine a less responsible company accidentally including toxic dyes or coatings due to supply chain mishaps. In such a case they might avoid paying damages to the harmed consumers.
-This instance of post-purchase EULA modification is a very good example of the strategic use of asymmetry. The business delivered their opt-in in a inexpensive, unexpected, and casual nature. The consumer has to do absolutely nothing to opt-in, and they can opt-in without reading it. Opting out is difficult, tedious and relatively expensive.
+This instance of post-purchase EULA modification is an example of the strategic use of asymmetry. The business delivered their opt-in notice in an inexpensive, unexpected, and casual nature. The consumer has to do absolutely nothing to opt-in, and in fact can be opted-in without having read the email at all. Opting out is difficult, tedious, and relatively expensive.
-==Post-purchase EULA modification==
+==Post-purchase EULA Modification==
 On March 29, 2024 Smartwool emailed a list of their account holders stating that they were opting them into [[Forced arbitration|forced arbitration]]<ref>
 {{cite web
@@ Line 31: / Line 31: @@
 }}</ref>
-This requirement is in itself more involved than the process of opting in but, additionally, USPS Priority is not the First Class mail that people typically use for mailing letters. This (seemingly minor) difference in mail type is the difference between a $0.56 postcard and a $10.10 Flat Rate Envelope at the time of writing.<ref>
+This requirement is in itself more involved than the process of opting in. Additionally, USPS Priority is not the First Class mail that people typically use for mailing letters. This (seemingly minor) difference in mail type is the difference between a $0.56 postcard and a $10.10 Flat Rate Envelope at the time of writing<ref>
 {{cite web
 |author=<!-- not cited-->
@@ Line 39: / Line 39: @@
 |url-status=live
 |access-date=19 Feb 2025
-}}</ref>, preying on an individual's reasoning that the effort involved in attempting to opt-out is not worth the time or money.
+}}</ref>, which preys on an individual's reasoning that the effort involved in attempting to opt-out is not worth the time or money.
-===Differences between pre-purchase and post-purchase EULA===
+===Differences Between Pre-purchase and Post-purchase EULA===
 According to the EULA available before the opt-in wave of emails, the original EULA<ref>
 {{cite web
@@ Line 53: / Line 53: @@
 |access-date=19 Feb 2025
 }}</ref> available on Smartwool's website stated:
-#A higher priority on contacting Customer Service first but, does not explicitly make it a prerequisite before arbitration.
+#A higher priority on contacting Customer Service first, but does not explicitly make it a prerequisite before arbitration.
 #No specification on who determines arbitrability.
 #AAA rules apply and outlines fee reimbursement if the claim is under $10,000.