Dropbox and the sneaky arbitration clause – can they avoid Australia’s unfair contracts law?

Dropbox launched its revolutionary cloud-based file hosting service in 2009 and unsurprisingly over 200 million users have flocked to it. In legal-speak that means they've also agreed to Dropbox's Terms of Service. Most online businesses' T&Cs say they can vary their terms whenever they like. In the past this has been controversial (remember Instagram's grab for control over images uploaded on the service?)

For those paying attention over the weekend, Dropbox sent you an email announcing it is changing its terms of service from 24 March 2014. One of these changes is that any disputes between you and Dropbox will now be subject to arbitration in the U.S under the laws of California.