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Cloud Storage Company DropBox Adds Arbitration Clause to Terms of Service – with Opt Out

Thursday, March, 6, 2014


 

DropBox, one of the most popular “cloud” storage service companies in the world, recently changed their Terms of Service to include a binding arbitration clause that would prevent users from being able to bring lawsuits against the company.  The official statement listed the typical reasoning behind this change: Faster, less expensive resolutions to disputes.

 

But in a fairly unusual move, DropBox also listed a clear, simple way to opt out of the clause and keep your right to bring a lawsuit: A Simple web link where you could check a box and click a button.  Typically, once a company decides that arbitration is in their best interests, they do not offer an opt out option – or they offer one that requires a great deal of effort, typically forms downloaded, printed, notarized and mailed in for processing.

 

DropBox maintains that it believes arbitration is the superior way to settle disputes between it and its customers.  It points to the ease of opting out as evidence of good faith.  It should be noted, however, that users must choose to opt out within 30 days of the new Terms of Service taking effect or they will be bound to arbitration permanently.