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In re Zappos.com, Inc., Customer Data Security Breach Litigation
Citation:
893 F. Supp. 2d 1058 (2012)Facts
In mid-January 2012, a computer hacker attacked Zappos.com and attempted to download files containing customer information such as names and addresses from a Zappos server. On January 16, 2012, Zappos notified customers via email that their personal account information had been compromised. Multiple plaintiffs filed lawsuits seeking relief under state and federal statutory and common law. Zappos moved to compel arbitration based on an arbitration clause contained in its website Terms of Use. The Terms of Use were accessible via a hyperlink at the bottom of each webpage, but users were not required to view or accept these terms when creating accounts, logging in, or making purchases. The Terms of Use also contained language allowing Zappos to unilaterally change the terms at any time without notice to users.
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