Forced arbitration with Smartwool socks

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Smartwool is a brand of wool clothing. The incident described in this summary is a example of post-purchase EULA (End User License Agreement) modification (colloquially referred to as "EULA roofieing"). It occurs when a business attempts to create or modify a contract after a sale on the basis of no-response from customers. Often this is done as prudence for business interests. However, it creates the potential for unjust situations. 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.

A feature of this example is 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.

Incident of post-purchase EULA modification

According to a viewer of the Rossman channel, Smartwool emailed a list of their account holders stating that they were opting them into forced arbitration, and to opt out, they must send a letter. through USPS Priority Mail, which is not the First Class mail that people typically use for mailing letters.

Text from the EULA as it appeared.

In addition to being a post-purchase action, the customers were opted in via email and could not simply reply to the email to opt out.

References

Video associated with this article: https://www.youtube.com/watch?v=670rwHz1WV8