Amazon reinstates binding arbitration, bars class-action lawsuits
Amazon said customers can still use small claims court as it limits mass arbitration cases to batches of at least 25.
- On Friday, Amazon reinstated binding arbitration for its customers while barring them from seeking class-action lawsuits, making it more difficult for users to address grievances in court.
- Five years ago, Amazon revoked binding arbitration after facing tens of thousands of costly individual cases. The company sought to address legal challenges that overwhelmed its administrative systems.
- Amazon's new terms define 'mass arbitration' as 25 or more cases within a six-month period; such claims 'would be settled in' 'batches of at least 25.' This caps administrative burden.
- A spokesperson said the clause will 'offer customers a fast, cost-effective way to resolve disputes' while still giving them the option of using small claims court.
- Disputes with Amazon begun prior to Friday remain unaffected by the new terms. Customers agree to updated conditions by continuing to use the company's services.
20 Articles
20 Articles
Amazon is trying to crush class-action suits before they get started
On Friday, Amazon customers received an email alerting them to an update to the site's terms and conditions. Most notably, it stated that disputes would now be resolved through arbitration and said users agree to a class action waiver. Amazon framed this as a "fast and efficient" way to resolve issues, but it notably would prevent customers from seeking the involvement of a judge or jury in most circumstances. Customers can still take Amazon to …
Amazon forces shoppers into arbitration five years after dropping it
Shoppers face a 60-day pre-filing wait, JAMS batching of mass claims and litigation funding disclosure. Cases pending before August 14, 2026 remain exempt. Continue reading this article on ppc.land. Sign up the PPC Land newsletter to get the latest marketing news.
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