Amazon reinstates mandatory arbitration for US customers, blocking class action lawsuits, with new terms effective immediately
Amazon has reinstated mandatory arbitration for its U.S. customers and blocked them from filing class-action lawsuits, with the newly revised terms taking effect immediately. The company stated that this move is intended to provide customers with a quick and cost-effective way to resolve disputes. Amazon had abandoned mandatory arbitration five years ago due to the high cost of handling tens of thousands of individual arbitration claims, especially after receiving approximately 75,000 arbitration requests regarding Alexa recordings in 2021. Under the new terms, 25 or more arbitration cases involving the same issue will be classified as "mass arbitration" and resolved in batches.
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