Amazon’s new user agreement seeks to curb class-action suits
Amazon reinstated an arbitration clause to limit class-action lawsuits, offering small claims court as an alternative.Summary
Amazon.com has reintroduced an arbitration clause in its user agreement that aims to prevent shoppers from filing class-action lawsuits against the retailer. The clause, announced in an email to customers on August 14, requires disputes to be resolved outside the courts, while still allowing customers to file small claims cases that typically cap damages at a few thousand dollars. Amazon said the update would provide a fast, cost‑effective way to resolve disputes and noted that it had removed a similar clause in 2021 amid privacy challenges related to Alexa devices. The company has faced class-action suits over product safety claims and difficulties canceling Prime memberships. The new clause is not automatically enforceable in court; plaintiffs’ attorneys could still pursue class-action suits, and a judge would decide whether the user agreement bars such actions.
(Source：The Straits Times)