Amazon’s New Terms of Service Bar Customers From Filing Class-Action Lawsuits
If you have a dispute with the e-commerce giant, you’ll have to hash it out through an individual claim with a third-party arbitrator.
Amazon has changed its Terms of Service, prohibiting customers from filing class-action lawsuits against the company if disputes arise. The company is now settling disputes through arbitration instead of allowing them in court, which could make it more difficult for customers to seek financial restitution. Amazon claims that arbitration is a fast and cost-effective way to resolve disputes, but critics argue that it puts a higher bar for individual effort and personal costs that may dissuade many customers from filing claims.
Although customers can still take the company to small claims court, the compensation they can receive is limited. The change was made after a previous class-action lawsuit that alleged deceptive "dark patterns" were used to push customers into paying for Prime subscriptions.
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