Amazon Revives Mandatory Arbitration Provision After Mass Filing Tactic

Amazon has reinstated its mandatory arbitration provision in its consumer Conditions of Use, reversing a decision made five years ago. The move follows a coordinated effort by plaintiffs' firms to file thousands of individual arbitration demands against Amazon over privacy claims.

The updated clause requires customers to first contact customer service and then submit a completed Notice of Dispute using Amazon's claim form. After 60 days, the parties must negotiate in good faith, after which arbitration may begin. The arbitration will be held virtually, with a single arbitrator from JAMS, under its Streamlined Arbitration Rules and Procedures.

The mass arbitration architecture has been built to absorb large numbers of claims by batching them into groups of at least 25, 100, or 500, depending on the number of demands filed. The batching thresholds, coordinated-counsel definition, and litigation funding disclosure requirement all address the mechanics that made the previous clause untenable.

The revision also changes the applicable law from Washington State law to the law of the state in which the injury or damage occurred for product liability claims. This reallocation is substantive and may increase Amazon's exposure across 50 jurisdictions.