May 13, 2024 SCT - JUDGMENTS AND ORDERS
Claim No: SCT 112/2024
THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
In the name of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai
IN THE SMALL CLAIMS TRIBUNAL
BEFORE SCT JUDGE MAITHA ALSHEHHI
BETWEEN
NAIMA
Claimant
and
NADINE
Defendant
| Hearing : | 8 May 2024 |
|---|---|
| Judgment : | 13 May 2024 |
JUDGMENT OF SCT JUDGE MAITHA ALSHEHHI
UPON the claim having been filed on 13 March 2024 (the “Claim”)
AND UPON the Defendant’s defence dated 22 March 2024
AND UPON a hearing having been listed before SCT Judge Maitha AlShehhi on 8 May 2024 with the Claimant’s representative and the Defendant in attendance (the “Hearing”)
AND UPON reviewing the documents and evidence filed and recorded on the Court file
IT IS HEREBY ORDERED THAT:
1. The Defendant shall pay the Claimant the amount of AED 2,220.
2. The Defendant shall pay the Claimant the DIFC Courts’ filing fee in the amount of AED 367.25.
Issued by:
Hayley Norton
SCT Judge and Assistant Registrar
Date of issue: 13 May 2024
At: 9am
THE REASONS
Parties
1. The Claimant is Naima (the “Claimant”), an online global professional network designed for female entrepreneurs.
2. The Defendant is Nadine (the “Defendant”), a registered member of the Claimant’s network.
The Claim
3. The Claimant is seeking payments from the Defendant following her membership to the online platform which is designed to provide female entrepreneurs with access to master classes, workshops and networking events to ultimately help them in the growth of their businesses.
4. The Claimant submits that the process of registering to become a member is clear and straightforward, and upon payment of the required member fee, the website provides the option to either pay an upfront lump sum or 12 monthly instalments. The following phrase is also plainly mentioned under purchase terms “please note that this membership is a minimum one-year commitment”.
5. The Claimant further submits that the Defendant must have read this term upon registering and accepting the full terms and conditions where it also states that the membership is for an annual basis. The Claimant adds that the Defendant could not have completed the membership successfully if she had not clicked on the below mentioned condition:
“I have read the terms and conditions”.
Therefore, the Claimant submits that the above acceptance constitutes a digital agreement process which is a binding agreement.
6. The Claimant contends that the Defendant’s membership started from 13 September 2023 for a period of one year, regardless of whether the Defendant decided to terminate her membership before the end of the year as the Defendant would still have access to the platform during this period and the Claimant’s right to collect payment remains as per the terms and conditions.
7. Despite several reminders, the Defendant is still in default of payment and as such the Claimant is requesting for the outstanding amount of AED 2,220 which represents the membership fee payment from October 2023 to April 2024.
The Defence
8. The Defendant denies the Claimant’s claim in full.
9. The Defendant takes the view that she is not eligible to pay any amounts as she cancelled her membership within 15 days of her initial registration due to her dissatisfaction with the Claimant’s services and failure to get adequate help for navigating the platform.
10. The Defendant argues that she was not provided with a copy of the digital contract despite requesting the Claimant to provide it.
11. The Defendant submits that she did not agree to an annual membership and reiterates that she is only obligated to pay for the services that were provided to her and she should not be required to pay for the remaining months as she did not utilise the platform as of October 2023.
12. At the Hearing, the Defendant confirmed that she did not read the terms and conditions although she proceeded with the online registration process and clicked the button to confirm that she had done so.
Discussion
13. The issue at dispute is whether the Defendant was aware that the membership was a yearly membership which entails a one year commitment of payment.
14. The subscription method is set out within the terms and conditions, and states as below:
“Subscription Membership
The Platform offers a recurring annual subscription membership model. Payments can be made in one lump sum or in a payment plan of 1 2 monthly instalments. Monthly recurring instalments shall be deducted monthly (automatically) via the merchant services used at initial payment.
Subscriptions are renewed automatically on an annual basis, no pro-rata refund shall be offered for subscription payments.
Upon cancellation, your Platform access remains for the duration of your membership period.
You may only browse through the Platform to utilise your subscription services or view the Platform offering or content.”
15. The Defendant argues that the termination clause stated within the terms and conditions mentions that she can cancel her membership by sending an email, which she did. The termination clause reads as below:
“TERMINATION
We reserve the right to cancel or block access to this Platform in respect of any user at any time without notice. We also reserve the right at any time, and for any reason, to terminate this agreement in respect of any user upon written notice by email. You may terminate your agreement with us by sending us written notice and discontinuing your use of the Platform or by deleting your account and discontinuing use of the Platform. Termination of the agreement between us in these Terms of Use does not affect either party’s accrued rights or liabilities prior to the date of termination.”
16. I find the above clause is clear that the Claimant’s accrued right to payment is not to be affected by the Defendant’s cancellation of the membership.
17. Furthermore, the landing page to complete the purchase of the membership mentions more than once that the membership is a yearly commitment. First, upon choosing the amount to be paid, the customer must choose whether to proceed with a payment plan of AED 370 or a yearly payment of AED 3,700, and it is stated that “NOTE: Naima is a year long membership and requires a minimum commitment of 12 months”. Secondly, under purchase items, it reads as follows:
“This is recurring subscription model that will be billed monthly and renewed yearly. Should you wish to cancel, you will need to notify us in writing at least 7 days before the end of your membership period if you wish to cancel. Please note that this membership is a minimum one-year commitment. Upon cancellation, you will have access to the platform until the end of your paid period. Due to the digital nature of the membership, refunds are not available.”
18. Although I sympathise and appreciate the Defendant’s position that she has not used the platform since October, the fact remains that the membership was intended to be an annual membership which was clear upon registration, both on the landing page for payment and in the terms and conditions under the subscription membership.
19. Accordingly, I find that the Defendant is liable to pay the outstanding amount to the Claimant on the basis that the Defendant accepted the terms and conditions, and consequently elected to pay monthly instalments to have access to the platform. The notion of not using the platform does not waive the Claimant’s entitlement to payment.
Findings
20. The Defendant shall pay the Claimant the outstanding amount of AED 2,220.
21. The Defendant shall pay the Claimant the DIFC Courts’ filing fee in the amount of AED 367.25.
