Forced Arbitration Clauses

A new article in Consumer Reports highlights the practice of forced arbitration that many companies include in “hundreds of millions of consumer contracts.” Everything from your credit card to your Netflix account may be affected by these clauses, which legally bind you into arbitration and remove you of your right to file a lawsuit if you are wronged.

The system is rigged against the consumer,” says Paul Bland, executive director of the consumer-rights law firm Public Justice. “The purpose is to say that even if companies break state truth-in-advertising laws, or debt collection laws, or lemon laws, there is nothing consumers can do but arbitrate.

To learn more about the issue of forced arbitration, visit our blog Protecting What’s Right.

Consumer Reports: The Arbitration Clause Hidden in Many Consumer Contracts