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Amazon reinstates arbitration clause to steer shopper disputes away from class-action suits

Amazon has reintroduced an arbitration clause and class-action waiver in its user agreement, requiring shoppers to resolve disputes outside court while still allowing small claims.

WHY IT MATTERS

This change could limit shoppers' ability to band together in class-action lawsuits against Amazon. However, the clause is not necessarily binding, and a judge would decide if it prevents such suits. Engineers and product managers building on Amazon's platform should note the shift in dispute resolution terms.

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The three things worth knowing

01

Amazon reintroduced an arbitration agreement and class-action waiver in its user agreement.

02

The clause requires disputes to be resolved outside courts, but small claims are still permitted.

03

The update is not necessarily binding; courts could still allow class-action suits.

THE CLUSTER

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