ICANN and Contracts of Adhesion: Supreme Court of Canada ruling that might impact our work
Hi folks, There was an interesting ruling today from the Supreme Court of Canada, that might impact our work (and ICANN policymaking in general). See the article at: http://www.michaelgeist.ca/2017/06/supreme-court-rules-facebook-cant-contrac... The text of the decision is at: https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/16700/index.do In particular, it speaks to whether non-negotiated "take-it-or-leave it" online contracts are enforceable. "The automatic nature of the commitments made with online contracts intensifies the scrutiny for clauses that have the effect of impairing a consumer’s access to potential remedies." "The burdens of forum selection clauses on consumers and their ability to access the courtsystem range from added costs, logistical impediments and delays, to deterrent psychological effects. When online consumer contracts of adhesion contain terms that *****unduly impede the ability of consumers to vindicate their rights in domestic courts******, particularly their quasi-constitutional or constitutional rights, public policy concerns outweigh those favouring enforceability of a forum selection clause." "It would be contrary to public policy to enforce a forum selection clause in a consumer contract that has the effect of depriving a party of access to a statutorily mandated court." (emphasis added) I would argue that compelling binding arbitration for disputes initiated by IGOs takes away rights of registrants, and is a contract of adhesion via this decision that cannot be enforced in Canada. This supports "Option 1" analysis of maintaining the status quo as much as possible, to not let ICANN policymaking tamper local laws. As Professor Geist concluded: "With the majority ruling against the enforceability of the forum selection clause, the court has demonstrated their *****discomfort with non-negotiated online terms that place consumers at a significant disadvantage and may result in a loss of rights.***** While forum selection clauses are an obvious manifestation of that, the *****reasoning might also be applied to other online contractual terms that seek to override important laws and protections.******* These could include contractual terms that seek to override copyright user rights or local consumer safeguards. The decision will undoubtedly have a significant impact on online contracting in Canada, forcing many online companies to reconsider whether their agreements are fully enforceable and *****emboldening consumers to stand up for their rights.*****" (emphasis added) Obviously this would impact other ICANN-mandated policies too that are the result of unequal bargaining power between registrants and ICANN/registries/registrars. Sincerely, George Kirikos 416-588-0269 http://www.leap.com/
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George Kirikos