In a 4-3 decision, the Supreme Court of Canada ruled in Douez v Facebook Inc, 2017 SCC 33, that Facebook’s efforts in its terms of service to require Canadians to pursue grievances with Facebook in California courts instead of Canadian courts is unenforceable.
The case involved a class action against Facebook alleging violations of BC's Privacy Act. The class action could not proceed, however, as Facebook argued that its terms of service require disputes to be resolved in California courts and under California law. Historically, the Supreme Court of Canada's jurisprudence favoured enforcement of these “forum selection clauses” on the rationale that holding sophisticated commercial parties to their jurisdictional choices advances the underlying principles that private international law seeks to achieve.
However, online platforms now routinely impose non-negotiable choice of forum and law clauses in their terms of service, which consumers must accept on a take it or leave it basis. This places a heavy burden on individuals, who are left with no option but to enforce their rights in foreign courts and under foreign laws. This is especially problematic where the laws in question implicate constitutionally protected rights are invoked, as different jurisdictions must have leeway to apply different standards of freedom of expression and privacy to their denizens. CIPPIC's intervention therefore argued that enforcing forum selection clauses imposed onto online customers on a non-negotiable basis will undermine the principles of order, fairness and comity which private international law seeks to achieve.