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Amazon Ends Use of Arbitration for Customer Disputes

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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.

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July 22, 2021, 12:48 pm Eastern Standard Time

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.

Travis Lenkner, a lawyer at Keller Lenkner, who represents consumers with Alexa-related claims, said that for most companies, arbitration is not only always an escape from class action proceedings, but part of an effort to avoid liability. It states that there was. This is the first company to turn the tail. Others may do so.

Keller Lenkner used a similar approach when food delivery service DoorDash challenged how workers were categorized and compensated. When the company filed thousands of arbitration claims on behalf of DoorDash workers, the company unsuccessfully claimed in court that it did 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 did not dispute the charges in court, but told Keller Lenkner in May that it withdrew the arbitration requirement as part of its 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.

After investigating this issue, I was convinced that most people were unaware that the smart speaker was recording. Warren Postman, Kelleren Kner’s chief attorney, said of Alexa-related allegations and other arbitration cases.

Sources

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2/ https://www.nytimes.com/2021/07/22/business/amazon-arbitration-customer-disputes.html

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