Amazon Ends Use of Arbitration for Customer Disputes

The Supreme Court adopted this legal tactic, primarily because the company successfully insisted that the arbitration be fair to consumers, including agreeing to pay many of the fees associated with the process. I supported it. However, as a result, few people used the arbitration system.

In the case of Amazon Alexa, a lawyer representing the customer took advantage of this consumer-friendly feature of the arbitration system. By filing the claims together, this strategy left a large amount of bill on Amazon, even before the proceedings were settled. Hiring an arbitrator and starting the process with a single bill costs Amazon about $ 2,900.

“For most businesses, arbitration has always been part of an effort to avoid liability, not just to escape class actions,” said Keller Lenkner, a lawyer who represents consumers in Alexa-related claims. Travis Lenkner said. “This is the first company to turn the tail. Others may do so.”

Kelleren Kner Use a similar approach We challenged how the food delivery service DoorDash classified and compensated workers. When the company filed thousands of arbitration claims on behalf of DoorDash workers, the company unsuccessfully claimed in court that it should not have to pay much of the initial costs of the proceedings. DoorDash was scolded by a federal judge for what he said was an effort to circumvent the arbitration system.

In Alexa-related cases, Amazon wasn’t fighting fees in court, I told Kelleren Kner in May Withdrawal of arbitration requirements as part of the “Terms of Use”. Many of Alexa’s arbitration claims are still in progress, and many proceedings have been decided in favor of the company, according to Amazon.

Customers claim that Amazon devices, including the Echo, violate state rules that require them to agree to be recorded.

“When I looked into this issue, I was convinced that most people were unaware that smart speakers were recording,” said Warren Postman, Keller Lenkner’s chief attorney, for Alexa-related allegations and other arbitrations. Describes the case.

Amazon Ends Use of Arbitration for Customer Disputes

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