The United States District Court for the Southern District of New York has held that a plaintiff is bound by an arbitration agreement even when the agreement is solely located in a website hyperlink.

In Whitt v. Prosper Funding LLC et al., the defendant argued that the case should be dismissed as the plaintiff had agreed to arbitration by accepting the terms found in their website. Namely, defendants contended that their website provided as follows: “Clicking the box below constitutes your acceptance of .. . the borrower registration agreement.” The Court noted that "the term 'borrower registration agreement' was conspicuously rendered as a hyperlink to the Agreement itself." The plaintiff contended that "he was not even constructively aware of the terms of the Agreement because those terms were viewable only by following a hyperlink."

Citing precedent, the Court found that the case should be dismissed as the plaintiff agreed to be bound to arbitraion.

Written by:   Alexandra Siskopoulos, Esq.

Telephone:   (646) 942-1798

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