We are living in a modern, digital era and the popularity of online purchases has risen sharply in recent times.
We are living in a modern, digital era and the popularity of online purchases has risen sharply in recent times.Consumers like the convenience, ease and speed of buying goods or services online.
After a couple of clicks, you can have a new television or top earmarked for home delivery, food delivered to your door or, in the following case, an online gamble rather than traipsing out to the shop in the rain.
However, for traders, the following case highlights the importance of ensuring online contracts correctly and appropriately incorporate your terms and conditions (Ts&Cs), to ensure your business is not caught out.
The recent case of Joan Parker Grennan v Camelot UK Lotteries Limited [2024] emphasises the importance of businesses incorporating their Ts&Cs when entering into a contract for goods and/or services online.
The Appellant, Mrs Parker-Grennan, played a new interactive instant win game on the National Lottery website, which at the time was operated by the respondent, Camelot. The Ts&Cs of the game stated there was only one win per game and if two matching numbers appeared, they would be highlighted which would result in a cash prize.
Due to a technical error in the game, the Appellant was shown two highlighted matching numbers which won her £10, however, there were also two other matching numbers shown on the screen which would have resulted in a £1m win (although these numbers were not highlighted).
Although the case is about online gambling, the Judge stated that it also raised the issue of what needs to be done for a business to appropriately incorporate Ts&Cs into a contract which is made online and, so far as they are aware, it is the first case in which such an issue has been considered by the respective court.
This case will have further implications on all types of online contracts given all leading authorities regarding the incorporation of Ts&Cs pre-date the digital era.
Such leading authorities refer to printed documents, and whether the person receiving the printed document was aware that there was text on it – there is no requirement for the document to actually have been read by the party and the online world we now live in is not factored in.
The Judge in this case explained that reasonable steps need to be taken by businesses to bring the Ts&Cs to the customer’s attention, which involves giving them sufficient opportunity to read them. For example, such opportunity may be afforded by providing a hyperlink to the terms or a drop down box amongst other options.
In this case, it was held that the Respondent had taken sufficient steps to incorporate their Ts&Cs at various stages of the service. A tick box was required to be completed by the Applicant to confirm they have read the Ts&Cs before the online service was provided, and again each time they were updated or a new service was introduced. The appeal was struck out and the Respondent was not ordered to pay the Appellant the £1m cash prize.
This case highlights the importance of ensuring your Ts&Cs protect your business as desired and are incorporated in the correct manner for your business needs.
In this case, the decision was that the Claimant wasn’t entitled to the £1m prize but if the Respondent’s legal documents were not watertight, this could have been a very different outcome!
Take this case as your prompt to check – or have your solicitor check – the Ts&Cs of any online contracts you use in your business and whether they are appropriately implemented. Get in touch with one of our Corporate Commercial team by emailing corporatecommercial@jacksons-law.com.
