In Dhruva v. CuriosityStream, Inc., 131 F.4th 146 (4th Cir. 2025), subscribers to CuriosityStream brought a putative class action alleging violations of the federal Video Privacy Protection Act and California law based on the company’s alleged disclosure of users’ viewing data and identifiers to Meta. CuriosityStream moved to compel arbitration pursuant to an arbitration clause contained in its online Terms of Use. The district court denied the motion, concluding that although the website displayed a hyperlink to the Terms of Use, users lacked clear notice that clicking “Sign up now” constituted assent to those terms. CuriosityStream appealed.
The Fourth Circuit reversed, holding that the users had reasonable notice of the contractual offer and manifested assent to the Terms of Use, including the arbitration provision, by registering for the service. The court emphasized that electronic assent, like an electronic signature, need not take any particular form and may be manifested through conduct, such as clicking a button or completing account registration, provided the action is logically associated with the contractual terms and undertaken with intent to enter the agreement. Here, the sign-up page expressly informed users that by subscribing they agreed they had read the Terms of Use, which were hyperlinked in a conspicuous manner near the payment and registration fields. The Terms of Use themselves unambiguously stated—in capitalized text on the first page—that registering with the website constituted agreement to all terms, including arbitration.
Placing the case within the broader legal framework governing digital contracts, the court reaffirmed that, consistent with established electronic signature principles, typed inputs and clicks can function as legally effective manifestations of assent when supported by clear interface design and contextual notice. The Fourth Circuit’s decision reflects a 2025 trend toward refining digital contract doctrine through case law rather than legislation, with heightened focus on user experience and the objective clarity of assent. Dhruva confirms that sign-in wrap agreements can be enforceable where website design provides reasonably conspicuous notice that registration or subscription constitutes acceptance, and where hyperlinks to contractual terms are prominently displayed in close proximity to the transactional interface. The court therefore reversed the denial of the motion to compel arbitration and remanded for further proceedings.
No information in this communication is intended to constitute specific legal advice. For specific legal advice, please contact an attorney, and if you have any such questions or would like more information about this issue, please contact William “Pat” Huttenbach at 713.752.8616, or email at phuttenbach@craincaton.com.
Thanks,
Pat
William “Pat” Huttenbach | Shareholder | Banking Litigation Crain Caton & James | Attorneys & Counselors
Five Houston Center | 1401 McKinney St., Suite 1700
Houston, TX 77010
Direct: 713.752.8616 | Fax: 713.658.1921 phuttenbach@craincaton.com | Download Vcard
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.