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Berkson v. Gogo LLC

United States District Court for the Eastern District of New York
97 F. Supp. 3d 359 (2015)


Facts

Gogo LLC (defendant) provided in-flight Wi-Fi access to airline passengers. Gogo’s terms of use stated that when customers signed up for Gogo’s monthly service, they were automatically enrolled in a renewing subscription. The terms of use also included mandatory arbitration and waiver of venue protection. The terms of use were hyperlinked near Gogo’s sign-in button. Gogo did not require a signature for signing up and did not immediately draw a subscriber’s attention to the terms of use contained in the hyperlink. Further, Gogo did not email the terms of use to subscribers upon enrollment. Adam Berkson (plaintiff) brought a class action suit against Gogo, alleging that the company misled customers into thinking they were purchasing only one month of Gogo service, as opposed to an automatically renewing monthly service. The complaint stated that Gogo’s monthly customers were not given notice that they were signing up for an automatically renewing subscription. Gogo filed a motion to transfer venue and a motion to compel arbitration based on the terms of use on its website.

Rule of Law

Issue

Holding and Reasoning (Weinstein, J.)

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