Amazon recently changed its terms of service to allow customers to file lawsuits. The company faces at least three proposed class actions, including one brought May 18 alleging the company’s Alexa-powered Echo devices recorded people without permission. Amazon made the change after it faced more than 75,000 individual arbitration demands on behalf of Echo users. That move triggered a bill for tens of millions of dollars in filing fees, according to lawyers involved, payable by Amazon under its own policies.
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Amazon Ends Use of Arbitration for Customer Disputes Amazon notified customers this week that it would no longer require them to resolve their legal complaints through arbitration. In a brief email to customers, Amazon said anyone using its products would now have to pursue disputes with the company in federal court, rather than go through the private and secretive arbitration process, which critics say puts consumers at a huge disadvantage.
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From the Texas Trial Lawyers Association news release.