Aug 14 (Reuters) - Amazon ( AMZN ) on Friday reinstated
binding arbitration for its U.S. customers while also barring
them from seeking class-action lawsuits, making it more
difficult for users to address grievances in court.
In emails on Friday, Amazon ( AMZN ) said the changes are effective
immediately and customers agree to the terms by continuing to
use the company's services. Often, companies alert customers to
upcoming changes to their terms of service weeks in advance.
Previously, Amazon ( AMZN ) said customers should pursue legal claims
in court in Washington state, where Amazon ( AMZN ) is based. Five years
ago, Amazon ( AMZN ) revoked binding arbitration after facing tens of
thousands of costly individual cases.
"We determined that reinstating the arbitration clause will
offer customers a fast, cost-effective way to resolve disputes
while still giving them the option of going to small claims
court," a spokesperson said in a statement.