Jack v. Ring LLC
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Ring manufactures and sells home security and smart home devices including video doorbells, security cameras, and alarms. The plaintiffs purchased video doorbell and security camera products from Ring and subsequently filed a class action complaint against Ring asserting claims under the Consumer Legal Remedies Act, false advertising law, and Unfair Competition Law. They sought injunctive relief requiring Ring to prominently disclose to consumers certain information about its products and services.
Ring moved to compel arbitration based on an arbitration provision in its terms of service. The plaintiffs did not dispute that they agreed to Ring’s terms of service but argued the arbitration provision violates the California Supreme Court’s 2017 “McGill” holding that a pre-dispute arbitration agreement is invalid and unenforceable under state law insofar as it purports to waive a party’s statutory right to seek public injunctive relief.
The court of appeal affirmed the denial of Ring's motion to compel arbitration. The parties did not “clearly and unmistakably" delegate to the arbitrator exclusive authority to decide whether the arbitration provision is valid under McGill. The contract language at issue is commonly understood to preclude public injunctive relief in arbitration. The Federal Arbitration Act, 9 U.S.C. 1, does not preempt McGill’s holding. The contract’s severability clause means the plaintiffs’ claims cannot be arbitrated and may be brought in court.
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