diff --git a/chrome/content/zotero/preferences/preferences.js b/chrome/content/zotero/preferences/preferences.js
index d3ff25f13..f13328b19 100644
--- a/chrome/content/zotero/preferences/preferences.js
+++ b/chrome/content/zotero/preferences/preferences.js
@@ -243,6 +243,21 @@ function updateStorageSettings(enabled, protocol, skipWarnings) {
 			}
 		}
 	}
+	
+	setTimeout(function () {
+		updateStorageTerms();
+	}, 1)
+}
+
+
+function updateStorageTerms() {
+	var terms = document.getElementById('storage-terms');
+	
+	var libraryEnabled = document.getElementById('pref-storage-enabled').value;
+	var storageProtocol = document.getElementById('pref-storage-protocol').value;
+	var groupsEnabled = document.getElementById('pref-group-storage-enabled').value;
+	
+	terms.hidden = !((libraryEnabled && storageProtocol == 'zotero') || groupsEnabled);
 }
 
 
diff --git a/chrome/content/zotero/preferences/preferences.xul b/chrome/content/zotero/preferences/preferences.xul
index 9930ef4ce..5bd92cfea 100644
--- a/chrome/content/zotero/preferences/preferences.xul
+++ b/chrome/content/zotero/preferences/preferences.xul
@@ -325,14 +325,19 @@ To add a new preference:
 						<separator id="storage-separator" class="thin"/>
 						
 						<!-- Group Libraries -->
-						<checkbox label="Sync attachment files in group libraries using Zotero File Storage"
-								preference="pref-group-storage-enabled"/>
+						<checkbox label="Sync attachment files in group libraries using Zotero storage"
+								preference="pref-group-storage-enabled" oncommand="setTimeout(function () { updateStorageTerms(); }, 1)"/>
 						
 						<separator class="thin"/>
 						
-						<hbox style="margin-top:.3em">
-							<label class="text-link" style="margin-left: 0" value="About File Syncing" href="http://zotero.org/support/file_sync"/>
-						</hbox>
+						<vbox>
+							<label class="text-link" style="margin-top:.3em; margin-left: 0" value="About File Syncing" href="http://zotero.org/support/file_sync"/>
+							<hbox id="storage-terms" style="margin-top: .4em" align="center">
+								<label>By using Zotero storage, you agree to become bound by its</label>
+								<label class="text-link" href="http://www.digitalscholar.org/z_terms" value="terms and conditions"/>
+								<label>.</label>
+							</hbox>
+						</vbox>
 					</groupbox>
 				</tabpanel>
 				
diff --git a/chrome/skin/default/zotero/preferences.css b/chrome/skin/default/zotero/preferences.css
index c5cdad212..7f8a7eab5 100644
--- a/chrome/skin/default/zotero/preferences.css
+++ b/chrome/skin/default/zotero/preferences.css
@@ -115,6 +115,22 @@ grid row hbox:first-child
 	min-width: 8em;
 }
 
+#storage-terms > label
+{
+	margin-left: 0;
+	font-size: .9em;
+}
+
+#storage-terms > label:first-child
+{
+	margin-right: .25em;
+}
+
+#storage-terms > label[class=text-link]
+{
+	margin-right: 0;
+}
+
 /* Reset tab */
 #zotero-reset row
 {