On August 16, 2024, Uber filed a Motion to Compel asking a Florida federal court to refer a class action complaint regarding its collection of sales taxes on food delivery fees to arbitration based on its terms of use accepted by customers. Uber argues that the arbitration clause in its clickwrap agreement, which customers agree to by checking a box in the app, mandates that disputes be resolved through arbitration rather than in court. The company has requested that the court stay the current proceedings while arbitration is conducted.
The lawsuit, Stephanie Martin v. Uber Technologies Inc., claims that Uber improperly taxed delivery fees of $3.99 and $2.49, which Martin argues should not be taxed separately under Florida law. Uber, which has collected over $5 million in such taxes, maintains that the taxpayer’s agreement to the arbitration terms is valid under both federal and Florida law.
Uber’s motion highlights that its clickwrap agreements, where users must acknowledge terms before using the app, are consistently upheld in courts. The company contrasts this with “browser-wrap” agreements, which may not be as enforceable.
Jeanette Moffa, Esq.
Phone: (954) 800-4138
Email: [email protected]
Jeanette Moffa is a Partner in the Fort Lauderdale office of Moffa, Sutton, & Donnini. She focuses her practice in Florida state and local tax, with an emphasis on sales and use tax. Jeanette provides SALT planning and consulting as part of her practice, addressing issues such as nexus and taxability, including exemptions, inclusions, and exclusions of transactions from the tax base. In addition, she handles tax controversy, working with state and local agencies in resolution of assessment and refund cases. She also litigates state and local tax and administrative law issues.
