Amazon Restores Arbitration, Blocks New Class-Action Lawsuits
Amazon has reinstated its binding arbitration requirement for US customers, effectively blocking new class-action lawsuits. The move was made after Amazon previously removed the requirement five years ago following tens of thousands of individual claims that proved costly to process.
The company argues that reinstating arbitration will give customers a faster and less expensive way to resolve disputes. However, critics may view this as an attempt by Amazon to avoid accountability and protect its reputation.
Under the new terms, customers who initiate multiple arbitration cases involving the same issue within six months will be classified as a 'mass arbitration' and resolved in batches of at least 25. Arbitration disputes are decided privately by third-party adjudicators, meaning the proceedings and any resulting settlement are typically not disclosed publicly.
Amazon has notified customers via email that continued use of its services constitutes acceptance of the revised terms. The new policy does not apply to disputes initiated before Friday.