This provision requires users and Amazon to resolve disputes through binding individual arbitration rather than court litigation, and prohibits class or representative actions. An exception exists for qualifying small claims court matters.
This analysis describes what Amazon's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This clause establishes binding individual arbitration as the exclusive dispute resolution mechanism for claims arising from Amazon services, and the class action waiver prohibits users from joining or initiating class proceedings. The provision includes a 30-day opt-out window from the date of first service use or material amendment.
Interpretive note: Enforcement of the class action waiver may vary by jurisdiction; state consumer protection statutes in certain states may limit enforceability despite FAA preemption arguments.
Previous version established binding arbitration as default with court option; current version adds explicit court jurisdiction in King County, Washington but allows Amazon to elect arbitration instead.
View full change record →Under this clause, users who do not opt out within 30 days agree to pursue any dispute with Amazon through individual binding arbitration rather than court, and waive the ability to participate in class or representative actions. The agreement permits small claims court as an alternative for qualifying claims.
How other platforms handle this
You and Teachable agree to resolve any disputes through final and binding arbitration, except as set forth under Exceptions to Agreement to Arbitrate below. You also agree that disputes will only be resolved on an individual basis and not as a class, consolidated, or representative action.
Any dispute arising from or relating to the subject matter of these Terms shall be finally settled by arbitration in San Francisco County, California, in accordance with the Streamlined Arbitration Rules and Procedures of Judicial Arbitration and Mediation Services, Inc. ("JAMS") then in effect, by ...
THESE TERMS REQUIRE THE USE OF ARBITRATION (SECTION 12.2) ON AN INDIVIDUAL BASIS TO RESOLVE DISPUTES, RATHER THAN JURY TRIALS OR CLASS ACTIONS, AND ALSO LIMIT THE REMEDIES AVAILABLE TO YOU IN THE EVENT OF A DISPUTE.
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"Any dispute or claim relating in any way to your use of any Amazon Service will be adjudicated in the state or federal courts in King County, Washington, and you consent to exclusive jurisdiction and venue in these courts. However, Amazon elects to resolve by binding arbitration any and all disputes with you. You agree that you and Amazon will resolve any claim or controversy at law or equity that arises out of these Conditions of Use or the Services (a "Claim") through binding arbitration, not in court, except that you may assert Claims in small claims court if your Claims qualify. There is no judge or jury in arbitration, and court review of an arbitration award is limited. The arbitrator must follow this agreement and can award the same damages and relief as a court (including attorneys' fees). YOU AND AMAZON AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING.— Excerpt from Amazon's Amazon Conditions of Use
(1) REGULATORY LANDSCAPE: This provision engages the Federal Arbitration Act, which generally preempts state law obstacles to arbitration enforcement. However, California's Discover Bank rule (as modified by AT&T Mobility v. Concepcion) and analogous state consumer protection statutes may create enforcement tension in specific jurisdictions. The FTC has issued guidance on arbitration clauses in consumer contracts under its unfair or deceptive acts or practices authority. (2) GOVERNANCE EXPOSURE: High. The combination of mandatory arbitration and class action waiver significantly narrows the collective remediation pathway for consumer claims. The opt-out mechanism, while present, requires affirmative written action within 30 days, which compliance teams should ensure is adequately disclosed at the point of account creation or terms amendment. (3) JURISDICTION FLAGS: California, New Jersey, and Washington state create heightened exposure; some state courts have declined to enforce class action waivers in consumer contracts under state consumer protection statutes. EU and UK users are generally not subject to mandatory arbitration clauses under applicable consumer protection law, though this document appears to govern US users. (4) CONTRACT AND VENDOR IMPLICATIONS: Marketplace sellers and third-party developers whose agreements incorporate Amazon's Conditions of Use by reference should assess whether this arbitration clause extends to B2B disputes or only consumer-facing claims. Indemnification and liability shift provisions elsewhere in the document interact with this clause. (5) COMPLIANCE CONSIDERATIONS: Compliance teams should verify that the 30-day opt-out notice requirement and mailing address are clearly disclosed during onboarding and at each material amendment, and should maintain records of when users first accepted the terms to assess opt-out eligibility windows.
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Coinbase's User Agreement includes a mandatory arbitration clause that most users may not have reviewed. Here is what the clause states and how the opt-out process works.
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This clause establishes binding individual arbitration as the exclusive dispute resolution mechanism for claims arising from Amazon services, and the class action waiver prohibits users from joining or initiating class proceedings. The provision includes a 30-day opt-out window from the date of first service use or material amendment.
Under this clause, users who do not opt out within 30 days agree to pursue any dispute with Amazon through individual binding arbitration rather than court, and waive the ability to participate in class or representative actions. The agreement permits small claims court as an alternative for qualifying claims.
ConductAtlas has identified this type of provision across 131 platforms. See the full comparison.
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