Amazon.com Inc. updates terms of service to require binding arbitration and a class-action waiver for customers.
Amazon.com Inc. notified customers via email on Friday that a new update to its terms and conditions requires all disputes to be resolved through binding arbitration rather than in court. This change reintroduces a leiual buffer between the company and plaintiffs' attorneys by requiring users to agree to a class-action waiver, meaning most disputes will be handled on an individual basis. Amazon.com Inc. framed the update as a fast and cost-effective way to resolve issues, though it prevents customers from seeking a involvement of a judge or jury in most circumstances. The company previously removed similar language in 2021 to address privacy concerns regarding Alexa devices and various class-action suits over Prime memberships. While the update is not strictly binding in court, a judge may still decide whether to allow class-action suits to proceed depending on the circumstances. The company stated that it continually updates its conditions of use to better serve its customers.