Dropbox Adds Forced Arbitration to Terms of Service. This is Why You Need to Opt Out Now


Dropbox has recently changed their terms of service and added forced arbitration. This limits you in the legal action you can take against them in case something happens in the future. For anyone wondering why this is bad, the Consumerist outlines the three reasons why you should opt out of forced arbitration:

1. Forced arbitration takes away your right to file a complaint in a court of law against a company that’s wronged you.

2. Companies want you to arbitrate because the system has been shown to be heavily unbalanced in favor of businesses — those who have the legal knowledge, experience, and funding to put up a proper defense — while harmed consumers often enter into the complicated process without legal representation.

3. Most arbitration clauses also take away the rights of groups of harmed consumers to pool their similar complaints together, forcing each customer into going through a binding arbitration that puts limits on damages; meaning companies can harm large groups of customers but get away with only paying out to those people who are willing to arbitrate.

But here’s the good news! Dropbox is giving users the option to opt out via an online form within 30 days of accepting their new terms of service.

Source: The Consumerist

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