Amazon Reinstates Arbitration, Class Action Waiver After Costly Mass Claims
Amazon is once again requiring US customers to resolve most legal disputes through individual arbitration, reinstating a provision the company dropped five years ago.
The company notified customers Friday that updated Conditions of Use and Amazon Prime Terms & Conditions took effect August 14, 2026.
The new terms also add a mandatory pre-arbitration dispute process and class action waiver. Customers can still bring qualifying claims in small claims court, and Amazon says it will pay most arbitration costs.
Amazon told Bloomberg it determined reinstating arbitration would offer customers a "fast, cost-effective" way to resolve disputes while preserving the option of small claims court.
Most of those disputes will also move out of the public court system.
Amazon previously removed mandatory arbitration from its consumer terms in 2021 after roughly 75,000 Alexa users filed individual arbitration demands alleging the devices recorded them without consent.
Tim De Chant
The claims triggered tens of millions of dollars in filing fees for Amazon, according to lawyers involved in the cases, turning a provision intended to keep disputes out of court into an expensive problem of its own. Amazon subsequently changed its terms to allow customer disputes to proceed in state or federal court in King County, Washington.
Five years later, Amazon is bringing arbitration back with rules tailored to the kind of mass claims it faced in 2021. Under the updated terms, 25 or more similar, coordinated arbitration demands filed within six months can be treated as a "Mass Arbitration," with claims grouped into batches rather than proceeding separately.
If more than 500 demands are filed, batches must include at least 100 claims, increasing to at least 500 claims when more than 2,500 demands are filed. Each batch gets one arbitrator and one set of administrative fees.
Before filing for arbitration, customers must first contact Amazon customer service and, if the issue remains unresolved, submit a Notice of Dispute and negotiate in good faith for 60 days.
Washington state law will continue to govern most disputes, while claims involving personal injury or physical harm to property allegedly caused by products purchased through Amazon will be governed by the law of the state where the injury or damage occurred.
Lawsuits already pending before August 14 are excluded from the new arbitration agreement. Other disputes subject to the provision must be arbitrated regardless of when they arose.
Amazon says Prime members accept the changes by continuing their membership. Those who don't agree "must cancel."
