Grok’s TOS Formation Failed–Skaggs v. X.ai

This case naturally raises some questions that Musk might choose to pose to Grok, like: “Grok, is it bad when TOS formation fails?” “Grok, what are best practices for TOS formation and does our current TOS formation process satisfy those?” * * * The plaintiff claims Grok “disclosed private and confidential information.” Grok sought to transfer the case to N.D. Tex. per its TOS forum selection clause. Everyone agrees the case should transfer if the TOS was properly formed. It was not. The Wrap Taxonomy Here is the applicable TOS formation screen at account signup. Everyone agrees this is a sign-in-wrap. Here is the screenshot when Grok users submit queries: The court says the chat screen is closest to a sign-in-wrap as well. Thus, the court follows the now-standard Chabolla framework for reviewing sign-in-wraps. Transaction Context Unhelpfully, the parties obviously didn’t think this factor was important: the Parties devote little space to addressing the transactional context at play…