CleanChoice Can’t Force Consumer to Arbitrate Deception Claims

CleanChoice Energy Inc. didn’t give a consumer sufficient inquiry notice of an arbitration provision, and the consumer’s contract and deceptive business practices claims can proceed, a federal appeals court said Wednesday.

The US Court of Appeals for the Second Circuit affirmed a lower court’s ruling that the second set of documents CleanChoice sent the consumer after the enrollment contract was signed didn’t constitute notice. The appeals court also said the consumer’s continued service payments didn’t constitute assent to the new terms.

Plaintiff Joanne Sudakow contracted with CleanChoice for electricity. Three weeks after enrolling in the electricity services, CleanChoice sent Sudakow ...