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Gibson Dunn - The Fashion Law and Business Report > Posts > California District Court Decision Enforces a Website’s Terms of Service Even as Applied to Minors
3.28.14
California District Court Decision Enforces a Website’s Terms of Service Even as Applied to Minors

Any company that depends on the terms of service of its website or app may want to take a look at Facebook’s recent win in C.M.D. v. Facebook, Inc., No. C 12-1216 RS (N.D. Cal. Mar. 26, 2014).  In that case, a putative class of minors challenged the enforcement of Facebook’s terms of service, arguing that “minors cannot contract,” with only exceptions for necessities.  U.S. District Judge Richard Seeborg disagreed, concluding that the relevant state statute provides that the general rule is actually the opposite:  minors’ contracts are generally allowed, and the exceptions to that rule are narrowly construed.  Judge Seeborg noted that there are situations where minors’ contracts are voidable after the fact, but that relief was not available in the case at hand, where the named plaintiffs continued to use Facebook’s services after becoming aware of the provision that they sought to challenge.

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