If your website or mobile app requires users to pay, then check the following to see how to design your terms of service. Even if you provide a free service, the following tips will be useful.
the user scroll-through your Terms of Service (TOS) and click the “I
Agree” button – explicitly acknowledging they have read the terms.
Having users implicitly agree to your terms because they visited your website (like Zappos did) is not recognized.
the user click the TOS at signup or when they are about to make a
the terms change, present them the next time the user logs in and follow step
Following an attack on Zappos’s website where a lot of user data was compromised, lawsuits were filed against Zappos.
Zappos tried to send the lawsuits to arbitration based on an arbitration clause in its user agreement. Recently, a federal court struck down Zappos.com's user agreement, denying Zappos' arbitration request. This is an unfortunate ruling for Zappos, because its contract--now dead--would have been quite helpful in combating this high-profile and potentially very expensive data security breach lawsuit. More importantly, the mistakes Zappos made in its user agreement--though common throughout the Internet--are completely and easily avoidable.