Amazon Reinstates Binding Arbitration for US Customers

Amazon has reinstated binding arbitration for its US customers, making it more difficult for users to address grievances in court.

The change, which took effect immediately, bars customers from seeking class-action lawsuits and forces them to pursue individual cases through arbitration.

This move comes five years after Amazon initially revoked binding arbitration due to an influx of costly individual cases. In 2021, the company faced around 75,000 arbitration claims related to its Alexa service being recorded without users' consent.

Amazon's new terms also define a 'mass arbitration' as 25 or more cases relating to the same matter in a six-month period, which would be settled in batches of at least 25. Arbitration cases are typically settled privately before a third-party adjudicator and disputes and any settlement are not made public.

Disputes with Amazon begun prior to Friday's change are unaffected by the new terms.