Amazon Forces Customers into Arbitration with New Terms Update
Amazon has updated its terms and conditions to require customers to resolve disputes through arbitration, rather than in court. This change would prevent customers from seeking a judge or jury's involvement in most cases, although they can still take Amazon to small claims court under certain circumstances.
The update also includes a class action waiver, which means that customers cannot seek collective relief in the form of a class-action lawsuit. Instead, disputes will be resolved individually through mass arbitration, rather than mandatory one-on-one hearings.
This change is significant because Amazon has faced numerous class-action lawsuits over the years regarding issues such as product returns and Prime membership. By implementing this new policy, Amazon may be attempting to limit its liability in these types of cases.
The update's effectiveness, however, remains uncertain. Plaintiffs and attorneys could still seek class-action suits, and a judge would ultimately decide whether to allow the case to proceed.