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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.

"The disclosure was clear and unambiguous," Judge Pacold said.

The judge also affirmed that Nissenbaum had explicitly agreed to Restore’s terms by clicking the box to express consent and submitting the "get a quick quote" request, an action that demonstrated his agreement to the terms.

While the case will proceed to arbitration, the arbitrator will need to decide whether Nissenbaum’s claims under the Telephone Consumer Protection Act (TCPA) are covered by the arbitration agreement. Additionally, the arbitrator will determine whether the case can proceed on a classwide basis.

Nissenbaum filed his lawsuit in February, accusing Restore of using automated texting technology to send promotional messages and violating TCPA regulations. He claims that despite his repeated "stop" requests to end the texts, Restore continued to send promotional messages, including one as recently as January 2024. Nissenbaum aims to represent a nationwide class of individuals who received multiple promotional texts from Restore after opting out.

Representatives from both parties did not respond to requests for comment on the ruling.

Nissenbaum is represented by Timothy Sostrin and Keith Keogh of Keogh Law Ltd., while Restore is represented by Paul Heeringa of Manatt Phelps & Phillips LLP.

The case is Nissenbaum v. Restoration Holdings LLC, case number 1:24-cv-01075, in the U.S. District Court for the Northern District of Illinois.