Clause DraftingAug 26, 2026
Amazon Comes Back to Arbitration — and Brings a Funder Disclosure Clause With It
Five years after abandoning consumer arbitration under the weight of 75,000 Alexa demands, Amazon reinstated it on 14 August 2026. The new clause is the most complete defence-side answer to mass arbitration yet drafted: a 60-day condition precedent, escalating JAMS batching, appeal rights on every batch, and a first-of-its-kind obligation to hand over litigation funding agreements.
Clause Desk··4 min read
The short version
- Amazon's Conditions of Use, last updated 14 August 2026, restore binding individual arbitration for US customers and reinstate a class action waiver, with carve-outs only for small claims, IP injunctions, and public injunctive relief.
- A 'Mass Arbitration' is defined as 25 or more demands filed within six months on the same or similar subject matter where claimant counsel are the same or coordinated in any fashion.
- Batching escalates with volume: batches of at least 25, rising to 100 above 500 demands and 500 above 2,500 demands — one set of administrative fees and a single arbitrator per batch.
