An update to Amazon's terms and conditions requires all disputes to be resolved through arbitration, effectively crushing class-action suits before they can begin.
Customers received an email on Friday alerting them to the update, which states that disputes will now be resolved through binding arbitration and includes a class action waiver. Amazon framed this as a "fast and efficient" way to resolve issues, but it significantly limits customers' ability to seek the involvement of a judge or jury. Customers can still take Amazon to small claims court in certain circumstances, though payouts are often limited.
The updated legal policies now read:
YOU AND WE AGREE THAT ANY DISPUTE OR CLAIM RELATING IN ANY WAY TO YOUR USE OF ANY AMAZON SERVICE, OR TO ANY PRODUCTS OR SERVICES SOLD OR DISTRIBUTED BY AMAZON OR THROUGH AMAZON.COM, WILL BE RESOLVED BY BINDING ARBITRATION RATHER THAN IN COURT …
Class Action Waiver. YOU AND WE AGREE THAT ANY ARBITRATION PROCEEDING WILL BE CONDUCTED ONLY ON AN INDIVIDUAL BASIS AND NOT IN A CLASS OR REPRESENTATIVE ACTION. You and we may only seek or obtain individualized relief in arbitration, and claims or requests for public injunctive relief or relief where you or we act in a representative capacity are not allowed.
Amazon had previously removed similar language in 2021 amid growing legal challenges related to privacy concerns with Alexa and its Echo speakers. The company has also faced class action lawsuits in the past concerning product returns and its Prime membership.
