After Receiving 75K Alexa Arbitration Filings, Amazon Now Allows Class Action Lawsuits
Amazon has amended its terms of service, allowing customers to launch class action lawsuits instead of settling issues through arbitration.
According to Bloomberg, the decision comes after users filed around 75,000 arbitration complaints against Amazon, alleging that the home assistant device Alexa recorded them without their knowledge or consent.
Arbitration, which was designed to be a faster and less expensive way to resolve disputes, has been utilized by large corporations such as Amazon to avoid costly class action lawsuits – and, according to some critics, accountability.
Additionally, the change does not yet apply to third-party sellers on Amazon’s extensive online store, nor delivery drivers.
Since the extent of Alexa’s recordings was discovered, multiple class action lawsuits have been filed in addition to the hundreds of arbitration filings that Amazon is purportedly facing.
Who Is Alexa?
Alexa is a hugely successful personal assistant device, with over 200 million units sold since its launch in 2015. All devices have a microphone-equipped speaker that allows users to interact with the device, such as enter commands and ask inquiries. In addition, Alexa may be linked to third-party products, both Amazon and non-Amazon.
Class Action Lawsuit
In May, a class action lawsuit was filed against Amazon in federal court in California, alleging that the Alexa devices capture and keep user information indefinitely, including outside conversations with others.
Furthermore, the plaintiff claimed that Amazon employs human and artificial intelligence analysts to interpret and evaluate the tens of millions of conversations and other data recorded by Alexa and that it uses this information for its own business purposes to create profiles of users that contain highly personal information that is combined with Amazon’s shopping history and other data.
In 2019, Amazon was hit with a class action lawsuit alleging that the Echo Dot kids edition collected and exploited children’s data without authorization. The Amazon Echo Dot kids edition is designed for kids to play music, tell stories, answer questions, tell jokes, and more.
However, plaintiffs claim that Amazon utilized confusing jargon to acquire parents’ agreement to collect plenty of data about their and other people’s children.
According to Bloomberg, Amazon claims that users can erase their voice recordings and that the information is used to improve and customize their software. The news comes as a surprise to plaintiffs in the Alexa Privacy lawsuits. Moreover, Amazon may see more customers file class action lawsuits as a result of its new terms of service.
Editor’s Note on Amazon Alexa Arbitrations End As Amazon Agrees To Class Action Lawsuits:
This article is published to inform you of the latest update on Amazon’s terms of service, allowing class action lawsuits in addition to its 75K Alexa arbitration filings. This is due to the home assistant device Alexa recording customers’ data without their knowledge or consent.
Do you have an Alexa device? Do you think it may be recording your information too? Do you intend to file a class action lawsuit or join one? Tell us about it by clicking the ‘Contact Us’ button below. We would love to hear from you.
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