A contract is not allowed to violate the law but companies have you sign illegal contracts all the time, they are counting on you not calling them on it.

If you read the article it just said the type of contract was a "clickwrap" and that the judge said it was "unenforceable" but it never says for what reason. I would wager the contract had an illegal clause in it and that's what the judge took issue with, not that it was a click to agree style contract in of itself. For instance if the contract essentially says we can charge you for a service we never provide that could violate consumer protection laws or just be considered outright fraud.