We already told you that perennial Worst Company In America heavyweight PayPal added a clause to its user agreement that forces customers with legal complaints into mandatory binding arbitration and takes away their right to band together in a class action. You can opt out of the clause by sending a very specifically formatted letter; luckily there’s now a template. [More]
As we’ve mentioned before, eBay recently changed its terms of service to include a mandatory binding arbitration clause that effectively takes away customers’ rights to pursue class-action lawsuits against the company. So it should come as no surprise that eBay subsidiary (and perennial Worst Company In America contender) PayPal has added a similar clause to its user agreement. But just like the eBay clause, users do have a short window to opt out. [More]
A woman who was allegedly raped while working for Halliburton/Kellogg Brown & Root in Iraq will have her civil claims heard in court, not by a company-selected arbitrator, thanks to a ruling by the Fifth Circuit Court of Appeals.
The perils of forced arbitration and the need for the Arbitration Fairness Act were recently featured on an NPR piece. The story discusses the case of Jamie Leigh Jones, the former Halliburton employee who was gang raped in Iraq by her coworkers, then was sent to arbitration when she tried to sue her employer.
The House Subcommittee on Commercial and Administrative Law is currently holding a hearing on forced arbitration and credit cards, appropriately titled “Federal Arbitration Act: Is the Credit Card Industry Using It To Quash Legal Claims?” Our friends at Public Citizen will be testifying. You can view (or at least listen to) the Real Player stream here.
Meet Michelle. We met Michelle at Arbitration Fairness Day and she told us about being forced into arbitration when she tried to get her poorly constructed home repaired. Now she’d like to share her story with you.
Mandatory binding arbitration, which corporations use to dodge accountability for their discrimination, negligence, or harassment, is a caricature of justice that offers no protection to consumers or employees. It’s also terrible for small business owners, as one couple found out.
We at Consumerist really hate mandatory binding arbitration, the faux-legal sucker punch that companies deliver when they screw up and you try to sue, and so should you. We’ve talked about its evils a lot, but no one can describe this legal abomination as well as the victims themselves, so this week we’ll let them speak.