Why Zappos’ user agreement didn’t stand up in court

2012, Zappos announced a massive security data breach that affected approximately 24 million customers. In response, users launched a class action security breach lawsuit against the company. Zappos tried to send the lawsuit to arbitration as per an arbitration clause in its user agreement. The court, however, has since struck down Zappos.com’s user agreement, leaving it without the legal protection the agreement would have provided Zappos, and denied the arbitration request.



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