As you know, Amazon.com recently dropped their infamous binding arbitration clause from customer agreements, which means that Amazon customers will be able to sue the company in courts, rather than have to seek an arbitrator.
The lawsuits should be brought in the courts of the state of Washington and exclude class actions.
Unfortunately, the change of policy doesn’t apply to third party Amazon sellers, who are still forced into arbitration as the only option of solving disputes.
This move comes after a group of disgruntled Amazon Echo customers mobilized through social media and started massively filling more than 75,000 individual arbitration demands, which triggered a bill for tens of millions of dollars in filing fees, according to lawyers involved, payable by Amazon under its own policies.
Amazon’s decision to drop its arbitration requirement is the starkest example yet of how companies are responding to plaintiffs’ lawyers pushing the arbitration system to its limits.
Arbitration agreements are buried in the contracts consumers sign to do everything from buying a cellphone to using a ride-hailing app. Many employers also require arbitration for adjudicating issues like pay disputes or discrimination claims. The U.S. Supreme Court has repeatedly upheld and strengthened the rights of companies to mandate arbitration.
It’s a shame that a group action like this will never happen in the world of Amazon sellers, where everyone acts for himself and is afraid of having his account suspended, rather than trying to contribute to a positive change that will affect the entire community.
Here you can view an e-mail sent on 21.July 2021 to all Amazon.com customers, informing them of the change and inviting them to bring lawsuits:
Here is a copy of the wording in English:
Dear [xxxxxx], We wanted to let you know that we recently updated our Conditions of Use. One of our updates involves how disputes are resolved between you and Amazon. Previously, our Conditions of Use set out an arbitration process for those disputes. Our updated Conditions of Use provides for dispute resolution by the courts. Please visit https://www.amazon.com/conditionsofuse to read our updated terms in full. As always, your use of any Amazon service constitutes your agreement to our Conditions of Use. Thank you, Amazon |
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