Amazon reinstates binding arbitration, bars class-action lawsuits

Amazon reinstated binding arbitration for U.S. customers and simultaneously barred class-action lawsuits, a move that makes it harder for consumers to pursue grievances in court and could reduce Amazon’s litigation exposure. The company said the policy change is effective immediately and that continued use of its services implies acceptance. Amazon framed arbitration as a faster, lower-cost dispute resolution path while preserving access to small claims court. The development is legally significant for AMZN because it may limit the scale and cost of future customer claims after the company previously abandoned arbitration amid a surge of individual cases. Market impact is likely modest in the short term, but the move could be viewed as favorable for liability management and legal expense control.