Uber Arbitration Clauses Shot Down in Pennsylvania State Court

Mandatory arbitration clauses for customers who sued Uber Technologies Inc. in Pennsylvania aren’t enforceable because the online registration webpage didn’t clearly inform them they were waiving their constitutional right to a jury trial, a state appeals court found.

The court’s 2-1 decision proposes a new legal standard in Pennsylvania for arbitration clauses imposed via online forms—that those forms must explicitly state the user is waiving their right to a jury trial and that the waiver must be in bold, capitalized text on the top of page one of the “terms and conditions” document.

The case springs from Pennsylvania couple Shannon ...