NVIDIA Wins US Court Order to Compel Arbitration in Cookie Banner Privacy Suit
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TL;DR
- US federal court ordered arbitration of privacy claims against NVIDIA.
- Claims arose from alleged noncompliance with a cookie banner on NVIDIA's website.
- All claims, including under California privacy law, are stayed pending arbitration.
- Court found the plaintiff had actual notice of the arbitration agreement.
Overview
The US District Court for the Northern District of California ordered that all claims in a proposed class action against NVIDIA Corp. regarding its website cookie banner must be resolved through arbitration. The suit alleged that NVIDIA's site failed to respect a user's preference not to be tracked, raising claims under both California privacy statutes and common law.
What Happened
A California resident filed a proposed privacy class action against NVIDIA, alleging the company's website cookie banner ignored his opt-out request and tracked his activity.
NVIDIA moved to compel arbitration, arguing that the plaintiff had agreed to arbitrate disputes through the website's linked terms of service.
The court found that the plaintiff had actual notice of the arbitration provision, as the cookie banner was clearly displayed and included a link to the terms.
On this basis, the court ordered that all claims, including those under the California Invasion of Privacy Act and related common law, be sent to arbitration and stayed litigation proceedings pending the outcome.
Context
The case reflects ongoing disputes regarding enforceability of online arbitration agreements, especially where users interact with website banners or terms of use links.
California courts and US federal courts have repeatedly addressed whether digital agreements, presented through pop-ups or banners, are sufficient to bind users to arbitration.
Why It Matters
- The order shows the willingness of US courts to uphold online arbitration agreements where users are found to have actual notice.
- It underscores the importance for companies of properly drafting and displaying arbitration terms in their online interactions with users.
- Plaintiffs seeking class actions over website privacy or consent mechanisms may face early challenges if arbitration clauses are present and considered enforceable.
Sources
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NVIDIA Wins Bid to Force Arbitration in Cookie Banner Suit
news.bloomberglaw.com