California federal court compels arbitration based on a modified sign

Takeaway: Terms and conditions requiring individual arbitrations can effectively end many consumer class actions. But courts rigorously scrutinize consumers’ assent to such terms, insisting upon reasonably conspicuous notice that a specified action by the consumer will constitute agreement to the terms and conditions. A California federal district court recently compelled arbitration based on a “modified sign-up wrap agreement,” reiterating the key factors courts consider in evaluating online assent to terms and conditions. Kroskey v. Elevate Labs, LLC , No. 5:24-cv-08113-EJD, 2025 WL 1507091, at *3 (N.D. Cal. May 27, 2025).

The named plaintiff in Kroskey sued Elevate Labs, LLC (“Elevate Labs”), and MindSnacks, Inc. (“MindSnacks”), which operated a mobile meditation application calle