“After 75,000 Echo arbitration demands, Amazon now lets you sue it”

As many know, a number of corporations determined that the inclusion in their consumer agreement of a provision requiring arbitration on an individual and not class basis would substantially reduce the likelihood that they would defend claims, as the economics seemingly made the prosecution of claims cost-prohibitive given the potential recovery.

However, as this article in Ars Technica explains, “[t]ech-savvy lawyers have begun using digital marketing tools to recruit and sign up thousands—even tens of thousands—of customers to participate in arbitration.” The resulting arbitration fees to the companies, totaling nearly $10 million in one example described by Ars Technica, have caused the entities to rethink the strategy.

Now, according to the article, Amazon, facing 75,000 arbitration demands claiming privacy violations by its Echo devices, has changed its terms of use, replacing the previously mandated arbitration requirement with a provision contemplating a traditional lawsuit.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s