Amazon bars customers from seeking class-action lawsuits

The new language reinstates a bulwark the company removed five years ago when it was overwhelmed by 75,000 arbitration claims from customers claiming its Alexa devices were recording them without consent.

The change means customers generally cannot take Amazon to court before a judge and jury. Customers can still use small claims court and individual arbitration, but only after first trying to resolve complaints with Amazon directly. The company said it’ll pay “most of the cost” of arbitration.

There’s no opting out, unless customers stop using Amazon. In its email to customers, the company said continued use of any Amazon service confirms someone’s agreement to the change.

In an emailed statement, an Amazon spokesperson said the company continually updates its conditions of use to better serve its customers.

“We determined that reinstating the arbitration clause will offer customers a fast, cost-effective way to resolve disputes while still giving them the option of going to small claims court,” she said.

Lawsuits filed before Friday can generally still go through. That includes a proposed class-action lawsuit filed just weeks ago in Seattle federal court accusing Amazon of falsely marketing seafood products as sustainable.

The new language doesn’t prevent consumer protection lawsuits filed by the Federal Trade Commission or other government agencies.

Last year, Amazon agreed to pay $2.5 billion to settle Federal Trade Commission claims that the company enrolled customers in Amazon Prime without consent and making it difficult to cancel. The deadline for customers to submit a claim for the FTC’s prime settlement passed July 27.