Amazon Bars Customers from Filing Lawsuits
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Fri Aug 14 2026 21:58:28
Amazon Bars Customers from Filing Lawsuits
By: Ina Steiner
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Have a dispute with Amazon and expect to get your day in court? Amazon is the latest company to quash those rights as corporations in effect create their own justice system.
Amazon is instituting a new mandatory arbitration policy that forces customers to waive their right to file a lawsuit or participate in a class action lawsuit. In Amazon's notification email on August 14, 2026, it said the new policy in its Conditions of Use means that most legal disputes would be resolved through individual arbitration "rather than in court by a judge or jury." Amazon users can still go to small claims court, however.
We went back to the archives and found that Amazon previously had a binding arbitration clause that it loosened in 2021 to the surprise of experts, according to the New York Times coverage of the change on July 22, 2021.
But Reuters reported on Friday (via AOL) that Amazon had been flooded with arbitration claims in 2021, which cost them millions. Amazon figured out a way to eliminate that problem: "Amazon said in its new terms that 25 or more arbitration cases relating to the same matter in a six-month period would be considered a "mass arbitration" and would be settled in "batches of at least 25.""
Reuters also noted the lack of transparency that results from arbitration cases: "disputes and any settlement typically are not made public."
Amazon also updated its Amazon Prime Terms & Conditions "to follow the same dispute resolution procedure."
Amazon sent the following email to customers on Friday announcing the new terms of use:
We are writing to let you know that we have updated our Conditions of Use and Amazon Prime Terms & Conditions, effective August 14, 2026. There are a few important changes you should note:
How disputes are resolved:<br>We have updated our Conditions of Use to include (i) a mandatory pre-arbitration dispute resolution procedure, and (ii) an arbitration agreement and class action waiver. This means that most legal disputes between you and us will be resolved through individual arbitration—a fast and efficient way to resolve concerns directly with us—rather than in court by a judge or jury. You may still go to small claims court, and if you choose to arbitrate, we will pay most of the cost. We have updated our Amazon Prime Terms & Conditions to follow the same dispute resolution procedure.
Applicable law:<br>We have updated the law applicable to disputes between you and us. Most disputes will continue to be governed by Washington State law, but certain disputes involving personal injury or property damage will now be governed by the law of the state in which the injury or damage occurred.
Please read the full updated terms, including the arbitration agreement, here: Amazon Conditions of Use and Amazon Prime Terms & Conditions. The arbitration agreement does not apply to litigation pending before August 14, 2026.
As always, your continued use of any Amazon service confirms your agreement to our Conditions of Use. If you do not agree, you should not continue to use Amazon services.
Thank you for choosing Amazon.
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