Amazon brings back ‘no class-action’ clause: Why customers may have to fight disputes outside court

Amazon.com Inc. reintroduced a clause in its user agreement that could stop customers from filing class-action lawsuits against the company. The move gives Amazon greater legal protection against plaintiffs' attorneys, a provision it had removed five years ago.

In an email sent to customers on Friday, the company said a new “arbitration agreement and class-action waiver” will require shoppers to resolve disputes outside the courts, but they could still file small-claims cases, which typically limit damages to a few thousand dollars.

Amazon 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.

Amazon removed a similar clause from its user agreement in 2021 amid a barrage of legal privacy challenges related to its voice-activated Alexa devices. It said customers should pursue legal claims in court in Washington state, where Amazon is based.

The company has also battled class-action lawsuits over claims of unsafe products and for allegedly making it hard to cancel Prime memberships.

The user-agreement update isn't necessarily binding in court. Plaintiffs attorneys could still seek class-action lawsuits against Amazon, and it would be up to a judge to determine if the user agreement prevents them from doing so.

“We continually update our conditions of use to better serve our customers,” an Amazon spokesperson said in an emailed statement. “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.”

Amazon's second-quarter results

Amazon announced its second-quarter 2026 financial results on July 30, 2026, reporting net sales of $200.6 billion—a 20% increase year-over-year. Operating income jumped 43% to $27.5 billion, driven by surging demand in artificial intelligence and cloud computing.

“AWS is booming, growing 36.7% year-over-year in Q2—our fastest growth in 18 quarters—and our AI and Chips businesses each eclipsed run rates of more than $25 billion,” said Andy Jassy, President and CEO, Amazon.

“In Stores, we again set record delivery speeds for Prime members in the first half of the year—over 40% more items delivered same-day or overnight, with Grocery and Everyday Essentials growing meaningfully faster than the rest of the business. And, Advertising had another strong quarter with 26% year-over-year growth. There’s a lot to be excited about, and we have much more coming for customers in the second half of the year and beyond.”