Amazon aims to thwart class-action lawsuits before they begin.

On Friday, Amazon sent out an email to its customers announcing changes to its terms and conditions. A key highlight was the shift to resolving disputes through arbitration, along with a class action waiver that users must agree to.

Amazon described this approach as a “fast and efficient” method for handling issues, but it effectively limits customers from having their cases heard by a judge or jury in most situations. However, users still have the option to take their cases to small claims court under certain conditions, although the potential payouts are typically capped at a few thousand dollars.

The updated sections of Amazon’s legal policies now state:
> 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 …
> Class Action Waiver. YOU AND WE AGREE THAT ANY ARBITRATION PROCEEDING WILL BE CONDUCTED ONLY ON AN INDIVIDUAL BASIS AND NOT IN A CLASS OR REPRESENTATIVE ACTION. You and we may only seek or obtain individualized relief in arbitration, and claims or requests for public injunctive relief or relief where you or we act in a representative capacity are not allowed.

This change comes after Amazon had previously removed similar language in 2021 amid increasing legal scrutiny from users concerned about privacy issues related to Alexa and Echo devices. The company has also faced class action lawsuits over product returns and its Prime membership. Instead of allowing these cases to go to court, Amazon’s new terms aim to handle larger disputes through mass arbitration rather than requiring individual arbitration hearings.

Nonetheless, the enforceability of this agreement in court remains uncertain. Plaintiffs and their attorneys may still pursue class action lawsuits, and it will ultimately be up to a judge to determine if such cases can move forward.