23andMe frantically changed its terms of service to prevent hacked customers from suing
23andMe frantically changed its terms of service to prevent hacked customers from suing
In an email sent to customers earlier this week viewed by Engadget, the company announced that it had made updates to the “Dispute Resolution and Arbitration section” of its terms of service that would prevent customers from filing class action lawsuits.
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Edit: added Axios link, removed double quote for Axios paragraphs
Forbidding people from filing class action lawsuit, as Axios notes, hides information about the proceedings from the public since affected parties typically attempt to resolve disputes with arbitrators in private. Experts, such as Chicago-Kent College of Law professor Nancy Kim, an online contractor expert, told Axios that changing its terms wouldn’t be enough to protect 23andMe in court.
https://www.axios.com/2023/12/07/23andme-terms-of-service-update-data-breach
The company did not publicly reveal the full extent of the breach until around two months after it occurred.
The latest: At least two law firms are pursuing a class action against 23andMe.
Canada-based law firms YLaw and KND Complex Litigation have proposed a class-action lawsuit against the company in the Supreme Court of British Columbia.
Of note: In emails notifying customers of the terms of service change, the company has said people are able to opt out if they email "legal@23andme.com" within 30 days of receiving the notice.
However, the updated terms of service requires customers to email a different address, "arbitrationoptout@23andme.com."
So fucking shady.
True!
Reminds me of other industries that have immunity against being sued in court.
Companies also try to make it seem for the workers, if you sue company, that they have to be handled internally (scare tatic?).
The latter would be an arbitration agreement, and unfortunately I think they're enforceable. They make you sign an contract waiving your rights and agreeing to arbitration.
I would still consult a lawyer to make sure.
Thank you for the info!
They're considered generally enforceable.
https://corpgov.law.harvard.edu/2018/06/08/the-enforceability-of-employment-arbitration-agreements/
On May 21, 2018, the United States Supreme Court, in a long-awaited decision, held that employment arbitration agreements with class action waivers requiring individual arbitration are enforceable under the Federal Arbitration Act (the “FAA”), notwithstanding Section 7 of the National Labor Relations Act (the “NLRA”), which protects employees’ rights to engage in concerted activities.
But they might not be. Sure, if I had some case related to this I would get legal advice.
Arbitration agreements are supposed to ensure that disputes are resolved outside of court, and that’s why it’s an irony of almost cosmic proportions that “the enforceability of arbitration agreements is likely ‘the single most litigated contractual issue’ today
https://www.natlawreview.com/article/ties-bind-you-arbitration-agreement-enforceable-and-binding
But are they enforceable?
The answer, fortunately, is yes, but it is important to keep in mind the most basic characteristic of arbitration agreements - they are contracts. Both Federal and State laws foster a strong policy favoring arbitration, but each provides that the enforceability of agreements requiring arbitration for work-related disputes will be determined by applicable state law regarding contract principles.
The majority of published case law suggests that arbitration agreements are most commonly challenged on the basis that they lack mutuality of contract, lack adequate consideration for the contract, or are unconscionable. These tripping blocks can be avoided by drafting a carefully-worded arbitration agreement and providing employees ample notice and opportunity to review the agreement.The latter is why 23andMe is giving people the chance to review the new TOS first. It also is probably different for a TOS vs an employment contract.
Awesome, thank you for the clarification!