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Amazon reinstates binding arbitration, blocks US class-action suits
The changes are effective immediately for US customers, who are required to accept the updated terms by continuing to use Amazon services.
Amazon reinstated binding arbitration for its US customers while barring them from pursuing class-action lawsuits, making it harder for users to challenge grievances in court, according to Insurance Journal.
Amazon said the new terms take effect immediately, with customers agreeing by continuing to use the company’s services, reversing a prior approach that directed legal claims to court in Washington state.
Insurance Journal notes that Amazon previously revoked binding arbitration about five years ago after facing tens of thousands of individual cases.
The article also points to a 2021 wave of around 75,000 arbitration claims from customers alleging its Alexa service recorded them without consent, a surge that the story says was driven by law firm tactics designed to overwhelm corporations with arbitration filings and administrative burden.
Amazon said arbitration would give customers a faster, more cost-effective way to resolve disputes, while preserving the option of going to small claims court, and it added that disputes started before Friday are not affected by the updated terms.