May 20, 2015

A contract action involving an online business promotion.

Practice point:  This is a putative class action based on defendants' alleged deception involving an online business promotion. In the promotion, defendants offered to provide to visitors to their website who entered their email address a $1 coupon toward the purchase of their products and further promotional materials. Plaintiff asserts that he and other visitors to the defendants' website provided their email address to defendants in response to this promotion, but did not receive the $1 coupon. The complaint alleges causes of action seeking damages for breach of contract and based on General Business Law § 349.

An advertisement for the sale of goods generally does not constitute an offer, which requires language plain and clear enough to establish the intended terms of the proposed contract. Here, defendants' promotion constituted only an invitation for offers, in light of the fact that the promotion expressly stated that the supply of coupons was "limited."

As plaintiff failed to raise a triable issue of fact, the Appellate Division affirmed the granting of defendants' cross motion for summary judgment.

Student note:  As a matter of law, the promotion did not create the power of acceptance for consumers and, consequently, no unilateral contract was formed.

Case:  Amalfitano v. NBTY, Inc., NY Slip Op 04077 (2d Dept. 2015)

Here is the decision.

Tomorrow's issue: A landowner's duty to protect.