Sixth Circuit Sides with Rocket Mortgage on Online Arbitration Clauses

Websites with adequate disclosure pages can enforce arbitration clauses even if consumers don’t sign them or create user accounts, according to a recent court ruling involving Rocket Mortgage.

Mortgage Professional America (MPA)’s Carleen Bongat wrote about the Sixth Circuit decision in Michael Dahdah v. Rocket Mortgage, LLC, in a significant development for online marketing.

The court held that properly designed disclosure pages may bind users who click through online forms, reframing how assent is evaluated in digital transactions.

The dispute arose after Michael Dahdah used the LowerMyBills.com website multiple times in 2020 and 2021 to seek mortgage refinancing offers connected to Rocket Mortgage. He received repeated sales calls despite his number being on the Do Not Call registry. Dahdah filed suit under the Telephone Consumer Protection Act (TCPA) in federal court.

Rocket sought to compel arbitration based on LowerMyBills’ terms of use. A district court refused, finding the disclosures insufficiently conspicuous. On appeal, the Sixth Circuit reversed, applying California contract law, which governed the agreement, and focusing on whether a reasonable user would understand that clicking constituted acceptance.

The appellate court emphasized design features that support enforceability. The disclosure appeared directly below action buttons, used contrasting hyperlinks, and employed dynamic scrolling that kept terms visible as users entered data. It rejected arguments based on small font size, lack of actual reading, or unresolved arbitration mechanics, noting that the Federal Arbitration Act supplies default rules when contracts are silent.

The panel also distinguished referral sites from ordinary retail purchases, reasoning that users expect follow-up contact when exchanging information for free services.

Legal teams should be aware that the ruling has implications for review of digital consent flows during acquisitions, vendor onboarding, and marketing partnerships. Counsel should assess website architecture, disclosure placement, governing law clauses, and arbitration provisions as part of deal structuring and integration risk analysis.

The decision also informs enterprise risk management, TCPA exposure mitigation, disclosure controls, and board oversight of customer engagement strategies in jurisdictions within the Sixth Circuit.