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.
Amazon framed this as a "fast and efficient" way to resolve issues, but it notably would prevent customers from seeking the involvement of a judge or jury in most circumstances. Customers can still take Amazon to small claims court in certain circumstances, though payouts are often limited to a few thousand dollars.
The relevant sections of Amazon’s legal policies page 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 removed similar language in 2021 as it faced growing legal challenges from users over privacy concerns relating to Alexa and its Echo speakers. It’s also faced class action suits over the years regarding product returns and its Prime membership. Rather than let those sorts of cases go to court, Amazon’s new terms would seek to resolve larger disputes through mass arbitration rather than mandatory 1-on-1 arbitration hearings.
The agreement might not hold up in court, however. Plaintiffs and attorneys could still seek class action suits, and a judge would decide whether to let the case proceed.
