Amazon bans class-action lawsuits: from August 14, only individual arbitration allowed

Amazon has updated its terms of service, effectively removing customers' ability to file class-action lawsuits against the company. According to its Conditions of Use page, all disputes will now be resolved through mandatory binding arbitration rather than in court.

The online retail giant sent an email to subscribers on Friday informing them of the change. Customers who continued to use Amazon's services after August 14 have implicitly waived their right to bring new class-action suits against the company.

The Conditions of Use page explicitly states: "You and we agree that any dispute or claim relating in any way to your use of any Amazon service, or to any products or services sold or distributed by Amazon or through amazon.com, will be resolved by binding arbitration rather than in court." It further clarifies that there is no judge or jury in arbitration, court review of arbitration awards is limited, and a neutral arbitrator will resolve the dispute while following the agreement's terms as a court would.

The updated terms also include a class-action waiver, preventing customers from filing arbitration requests together. While Amazon is permitted to handle batches of arbitration proceedings under detailed mass arbitration rules, each dispute must be filed individually.

Amazon frames the change as beneficial for customers, promising to "pay most of the cost" for those who choose to arbitrate disputes. A company representative did not immediately respond to a request for comment.