Amazon Blocks Class-Action Lawsuits with Arbitration Clause

Amazon has quietly added an arbitration clause to its terms of service, effectively banning customers from filing class-action lawsuits against the company.

The change, which was implemented on August 14, states that any disputes between Amazon and its customers will be resolved through binding arbitration rather than in court. This means that individual customers must submit their claims directly to Amazon, which has a 60-day window to resolve the issue before proceeding to arbitration.

Amazon's chosen third-party arbitrator is JAMS, which charges a $250 fee upfront for filing an official complaint. The process demands more time and money than a class-action lawsuit settlement claim, making it unlikely that customers will pursue individual claims.