Amazon Changes Its Terms, Bringing Back Mandatory Arbitration for U.S. Customers

WASHINGTON – Amazon has updated the legal terms governing U.S. customers, reinstating mandatory arbitration for most disputes and adding a class-action waiver that generally requires customers to pursue claims individually. The changes took effect August 14, 2026, and apply to Amazon’s general Conditions of Use and Amazon Prime Terms & Conditions. They are aimed primarily at ordinary Amazon customers, not specifically members of the Amazon Associates affiliate program or third-party sellers, which operate under separate agreements.

What Changed

Under the new terms, most customer disputes must first go through a required pre-arbitration process. If the matter is not resolved, it generally proceeds through individual arbitration rather than a lawsuit before a judge or jury. Amazon continues to allow qualifying disputes to be filed in small claims court and says it will pay most arbitration costs. The agreement also includes a class-action waiver, meaning customers generally cannot combine covered claims into a traditional class-action lawsuit.

Amazon also revised its choice-of-law provisions. Washington State law will continue to govern most disputes, while certain personal injury and property damage claims will instead be governed by the law of the state where the injury or damage occurred.

Amazon Previously Abandoned Arbitration

The change is particularly notable because Amazon has been through this before. Amazon previously required individual arbitration but dropped the requirement in 2021 after attorneys representing Echo and Alexa users reportedly filed roughly 75,000 individual arbitration demands. That created a costly problem for Amazon. Instead of defending one class-action lawsuit, the company faced tens of thousands of separate arbitration proceedings and potentially substantial arbitration fees. Amazon responded by removing mandatory arbitration from its consumer terms and directing disputes to state or federal courts in King County, Washington. Now, roughly five years later, Amazon has brought arbitration back.

The New Terms Address Mass Arbitration

The updated agreement appears designed to prevent a repeat of the 2021 situation. According to Reuters, the new terms establish special procedures when 25 or more similar arbitration demands are filed within a six-month period. Those cases may be treated as a “Mass Arbitration” and handled through procedures that include grouping cases into batches. That provision is significant because the earlier arbitration system became expensive for Amazon when large numbers of customers used it simultaneously.

Existing Lawsuits Are Excluded

Amazon says the new arbitration agreement does not apply to litigation already pending before August 14, 2026. For future disputes, however, Amazon is establishing arbitration as the default process for most covered customer claims. The company also told customers that continued use of Amazon services constitutes acceptance of the updated Conditions of Use.

What This Means for Customers

For most Amazon customers, the change will have no effect on everyday shopping or use of Prime services. Its importance becomes apparent when a serious dispute arises. Amazon customers who continue using the service are now being told that most future claims must be handled through individual arbitration rather than conventional court litigation, while class actions are generally prohibited. The broader story is that Amazon has returned to an arbitration system it abandoned five years ago, this time with new provisions aimed directly at handling large numbers of similar claims.

John Colascione

About The Author: John Colascione is Chief Executive Officer of SEARCHEN NETWORKS®. He specializes in Website Monetization, is a Google AdWords Certified Professional, authored a how-to book called ”Mastering Your Website‘, and is a key player in several online businesses.