Forced arbitration with Smartwool socks: Difference between revisions

{{Merge|The contents of this page will be more accessible if integrated in some way with the company page where the incident is described.|[[Smartwool]]}}

Smartwool is a brand of wool clothing. The incident described in this summary is a example of post-purchase EULA (End User License Agreement) modification (colloquially referred to as "EULA roofieing"). It occurs when a business attempts to create or modify a contract after a sale on the basis of no-response from customers. Often this is done as prudence for business interests. However, EULAs create the potential for unjust situations<ref>[[Disney wrongful-death lawsuit]] - wiki.rossmanngroup.com - accessed 2025-01-29</ref>. To illustrate the magnitude of risk posed by a clothing-related EULA, one can imagine a less responsible company accidentally including toxic dyes or coatings due to supply chain mishaps. In such a case they might avoid paying damages to the harmed consumers.   

A feature of this example is the strategic use of asymmetry. The business delivered their opt-in in a inexpensive, unexpected, and casual nature. The consumer has to do absolutely nothing to opt-in, and they can opt-in without reading it. Opting out is difficult, tedious and relatively expensive.   

==Incident of post-purchase EULA modification==

According to a viewer of the Rossman channel,<ref>[https://www.youtube.com/watch?v=670rwHz1WV8 "Forced Arbitration On SOCKS! Purposely Difficult Opt Out Scam Explained"] - youtube.com - accessed 2025-01-29</ref> on March 29, 2024 Smartwool emailed a list of their account holders stating that they were opting them into forced arbitration, and to opt out, they must send a letter through USPS Priority Mail, which is not the First Class mail that people typically use for mailing letters. This seemingly minor difference in mail type is the difference between a $0.56 postcard and a $10.10 Flat Rate Envelope<ref>https://www.usps.com/ship/mail-shipping-services.htm - accessed 2025-01-30</ref>, preying on an individual's reasoning that the effort involved in attempting to opt-out is not worth the time or money.

[[File:Screenshot from "Forced Arbitration On SOCKS! Purposely Difficult Opt Out Scam Explained".png|thumb|600px|Text from the EULA as it appeared.]]

 

==Differences between pre-purchase and post-purchase EULA==

According to the EULA available before the opt-in wave of emails, the original EULA<ref>[https://web.archive.org/web/20231201234036/https://www.smartwool.com/customer-service/terms-of-use.html "Smartwool terms of use"] - archive.org - archived 2023-12-01</ref> available on Smartwool's website stated:

#An informal dispute resolution process where the complaining party must send a written notice describing the dispute and allow 30 days for resolution before arbitration can begin.