Enforcing Modified Contracts: Notification and Assent

October 2007
E-finance & Payments Law & Policy
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In a recent class action lawsuit (Douglas v. United States District Court) the Court of Appeals ruled that a customer cannot be bound by the modified terms of a service contract if they did not receive proper notice of the modifications. Because many Internet-based businesses rely on statements making the customer liable for checking for updates to contract terms, the Court of Appeals' decision could have ramifications for e-finance and e-payments companies that conduct their business online, explain Mark R. Weinstein and Heidi L. Keefe.