[stephengillie]

“We reserve the right to change…these terms and conditions at any time.” Zappos isn’t the only website using language like this; it’s ubiquitous on the Internet. Unfortunately, despite its widespread usage, this language is toxic to a contract.

The court takes this amendment power to its logical conclusion. If Zappos can change the terms at any time, then it can change the arbitration clause at any time. Thus, citing to a long list of cases, the court says that such unilateral power to change the arbitration clause makes the clause “illusory”–and thus unenforceable.

Oh so very useful to know...