Ford

T-Mobile USA, Inc., Verisign, Inc., and Jamster! (collectively, “Appellants”) appeal from the district court’s order denying their motion to compel arbitration. We affirm.

Although Appellants argue that their arbitration provision is not procedurally or substantively unconscionable under California law, the Appellants’ agreement — which requires customers to waive class action and bring claims only in an individual capacity — is not substantively distinguishable from the Cingular arbitration agreement this court held unconscionable in Shroyer v. New Cingular Wireless Servs., Inc., 498 F.3d 976, 983-88 (9th Cir.2007).

Appellants argue their agreement is not procedurally unconscionable because customers accepted the arrangement from the outset and could have elected a different mobile phone company; however, this court specifically rejected the “marketplace alternatives” rationale in Shroyer, id. at 985-86 , and California courts have done the same, Gatton v. T-Mobile USA, Inc., 152 Cal.App.4th 571, 582-85 , 61 Cal.Rptr.3d 344 (2007).

Shroyer also expressly and conclusively rejected the argument that California law is preempted by the Federal Arbitration Act (“FAA”), 498 F.3d…