Amazon has made a drastic change in its Terms of Use without prior notice, which has led to class actions against the company. The team is reacting to a flood of personal lawsuits related to Alexa-powered Echo devices.
Many companies – including Amazon so far – have blocked this option in their terms of use, as higher payments are usually for lost class activities than individual activities.
Instead, clients and employees can only sue in cases called arbitral tribunals outside the traditional court system. The U.S. Supreme Court, the Supreme Court of the United States, has repeatedly upheld this process, thus strengthening the rights of companies.
As The Wall Street Journal Amazon recently modified the Terms of Use without prior notice. Prosecutors may have recently flooded the Amazon with more than 75,000 individual arbitration claims. Practical fees only, arising from this and payable by Amazon as per its own guidelines, are in the double-digit million range.
Complaints revolve around allegations that the company’s Alexa-powered echo speakers are recording users without permission.
Amazon Stock has not yet responded to the change in terms of use. The shareholder is also optimistic for the company.
