Companies add ‘binding arbitration’ to their terms and conditions because it usually means they have to pay out less money. However, Amazon had to change their terms last month after Amazon Echo users hoisted them by their own petard. Poetic justice.
Yet, this wasn’t quite the “win” that Amazon wanted. Echo users have now brought more than 75,000 arbitration demands against the company, according to a Wall Street Journal report. Because Amazon’s previous terms said that the company would pay for arbitration filing fees, the retail giant was on the hook for tens of millions of dollars before a single case was heard. Amazon has now changed course.