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Technology,
Corporate,
Civil Litigation

Jan. 12, 2022

Does customers’ knowledge of corporate structure affect arbitration agreement?

Uber is trying to compel arbitration with a putative class of Postmates customers, saying users agree to arbitration when they agree to its terms of service. However, plaintiffs allege Postmates does not have clear arbitration clauses and Uber is attempting to argue using Uber Eats’ terms of service, which does have a clear arbitration clause.

Postmates customers would not know they had agreed to arbitrate claims with Uber Technologies because the companies' relationship is not common knowledge, an attorney for a putative class argued Tuesday in a San Francisco case alleging the parent company added a hidden 20% markup to food prices for Postmates.

Uber is trying to compel arbitration with a putative class of Postmates customers, saying users agree to arbitration when they agree...

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