Amazon Reinstates Mandatory Arbitration and Class-Action Waivers

On August 14, 2026, Amazon.com, Inc. updated its Conditions of Use to reinstate a mandatory binding arbitration agreement and a class-action waiver for U.S. customers. The new terms prevent shoppers from taking the company to court before a judge or jury, requiring them instead to resolve disputes through a third-party arbitrator, JAMS. To initiate this process, customers must first attempt to resolve the issue directly with the company for 60 days and pay a $250 filing fee, though Amazon has pledged to cover most subsequent arbitration costs.

This policy reverses a 2021 decision in which the company removed arbitration requirements after facing approximately 75,000 individual claims regarding Alexa devices recording users without consent. To avoid a similar administrative burden, the updated terms introduce mass arbitration rules that allow the company to resolve batches of 25 or more similar claims together. Small claims court remains an available option for customers.

The update does not affect lawsuits filed before August 14, such as a case regarding sustainable seafood marketing, nor does it insulate the company from government litigation. The Federal Trade Commission retains the right to pursue legal action, having previously secured a $2.5 billion settlement from Amazon over unauthorized Prime enrollments. Customers agree to these terms by continuing to use Amazon services, with the only opt-out being to stop using the platform entirely.