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Shrinkwrap contracts or shrinkwrap licenses are boilerplate contracts packaged with products; use of the product is deemed acceptance of the contract. Web-wrap, click-wrap and browse-wrap are related terms which refer to license agreements in software which is downloaded or used over the internet.
Browsewrap: Also called implied consent, is when user consent is assumed by their continued use of a website and doesn't require they take active action. Clickwrap: Also called explicit consent, involves asking users to take an affirmative action, like ticking a checkbox or clicking an 'I Agree' button.
Clickwrap requires users to provide affirmative assent to an agreement by clicking a button or checking a box. Browsewrap doesn't require signers to do anything. In short, browsewrap doesn't require affirmative assent and instead relies on assumed or implied consent.
Unlike the shrink wrap agreements where the terms of the agreement are hidden inside the box, in case of click wrap agreements, all the terms and conditions are accessible prior to acceptance, either in the same window or through a hyperlink.
The shrink wrap contract has the agreement inside the packaging and the opening of the package indicates the consumer's acceptance of the same. Browse wrap contracts have the terms and conditions and privacy policy written on the website highlighted with the link. The consumer has agreed to this contract by default.
To date, California courts have identified four types: A Browsewrap agreement is one where the website has a hyperlink to the company's terms of use, and the user accepts those terms simply by browsing the site. These agreements are generally not enforceable because the user may be unaware of the terms.
A common click wrap agreement example is software licensing. In this case, a user must agree to the terms and conditions before downloading software. Other examples include registering a social media account, NDA agreements, cookie policies, data processing agreements, and Statements of Work (SOWs).
An example of browsewrap where the terms are clickable: "By browsing this website, you acknowledge and agree that your access to information on these pages constitutes acceptance." This paragraph has links for various items such as "Privacy Policy" or "Terms".