Amazon Reinstates Arbitration Clause and Class-Action Waivers in Conditions of Use

Amazon has reinstated binding arbitration and a class-action waiver in its Conditions of Use, effective August 14. This means that customers can no longer file class-action lawsuits against Amazon, but they can still take their disputes to small claims court.

The move affects Rhode Island shoppers, who are limited to filing small claims cases up to the state's $5,000 cap. For larger disputes, customers will have to arbitrate individually, which consumer advocates argue can be a barrier to enforcing consumer protection law.

Amazon had previously dropped its arbitration clause in May 2021 after facing over 74,000 individual arbitration claims. The company has not given a reason for reinstating the clause.