Amazon’s new user agreement seeks to curb class-action suits
It had removed a similar clause from its user agreement in 2021.
Amazon has reinstated a clause in its user agreement that aims to deter shoppers from filing class-action lawsuits against the online giant, a move it previously removed five years ago. In an email sent to customers on August 14, Amazon announced a new "arbitration agreement and class-action waiver" requiring shoppers to resolve disputes outside of court, though they can still file small claims, which typically limit damages to a few thousand dollars.
An Amazon spokesperson stated that the company updates its conditions of use to better serve its customers and that reinstating the arbitration clause offers a quicker, more cost-effective way to resolve disputes while still allowing customers to pursue small claims court options. The clause's reinstatement is not a guaranteed deterrent in court, as plaintiffs' attorneys could still pursue class-action lawsuits, with the final decision resting on a judge's interpretation.
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