Amazon is trying to crush class-action suits before they get started
Amazon has updated its terms and conditions to mandate binding arbitration and include a class-action waiver for customer disputes. This move aims to prevent customers from pursuing class-action lawsuits in court, though its legal enforceability remains subject to judicial review.
Why it matters
Highlights the ongoing corporate strategy of using arbitration clauses to limit legal liability and consumer rights.
On Friday, Amazon customers received an email alerting them to an update to the site’s terms and conditions. Most notably, it stated that disputes would now be resolved through arbitration and said users agree to a class action waiver.
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 …
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