An Illinois federal judge has temporarily halted litigation against a hair restoration company accused of sending unsolicited promotional texts. The ruling, issued on Friday, directs the parties involved to resolve the dispute through arbitration, referencing a September decision by the Seventh Circuit that upheld an arbitration agreement.
U.S. District Judge Martha Pacold explained that the two-part test applied in the Menards hidden fee case earlier this year also applied to Restore’s website, which she said reasonably notified Stuart Nissenbaum of the arbitration terms. Nissenbaum had agreed to these terms when he clicked to receive a price quote for hair restoration services.
The Menards case involved an arbitration clause and other service terms displayed without a hyperlink in an otherwise cluttered webpage. The Seventh Circuit ruled that the terms were conspicuously presented enough to inform the customer, Pilar Domer, that by completing her purchase, she was agreeing to the terms. In Nissenbaum’s case, Judge Pacold noted that Restore’s website was less cluttered, and its terms were displayed in a way that clearly informed users of the arbitration requirement. After clicking the box to “expressly” agree to the terms, users were prompted to review the terms, which were made accessible via a hyperlink.
