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District Judge Nicholas G. Garaufis

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SquareTrade sells and administers extended warranties and service contracts for consumer products. Through amazon.com (Amazon) Starke bought SquareTrade’s 2-Year Electronics Protection Plan to cover a CD player ordered from Staples. SquareTrade’s representative informed Starke that his protection plan was invalid because the CD player was not bought at Amazon. In Starke’s putative class suit asserting fraudulent and unfair trade practices, SquareTrade sought to enforce an arbitration provision that first appeared in a “terms and conditions” document provided via hyperlink in an email confirming Starke’s purchase of a SquareTrade protection plan on Amazon. Applying New York law, the court denied SquareTrade’s motion, finding no enforceable agreement to arbitrate. SquareTrade did not show Starke had actual knowledge, or reasonable notice of, the arbitration clause. It’s interactions with Starke failed to satisfy the analysis in Berkson v. Gogo LLC, 97 F.Supp. 3d 359. Nor did Starke objectively manifest assent to the protection plan’s terms. He was unaware of the terms and conditions and lacked a meaningful opportunity to review them. Thus, failing to cancel the protection plan was not assent to the subject arbitration provision.

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