Mandatory Binding Arbitration Still Sucks

BusinessWeek has published a pretty substantial cover story on arbitration, and why it disadvantages consumers. Consumerist readers will be familiar with many of the story’s criticisms: one study finds 99.8% of arbitration cases are decided in the corporation’s favor, some arbitration firms market themselves to companies as a sympathetic and partial judge, the arbitration process is intentionally structured to handicap consumers, and more.

Although there aren’t any revelations in the article, it’s still nice to see a story critical of arbitration run in a business publication. The volume of the article—BusinessWeek interviews numerous former arbitrators who became disillusioned with the process—makes a pretty compelling case that arbitration is broken, although it doesn’t mention any solutions, like passing the Arbitration Fairness Act.

Banks Vs. Consumers (Guess Who Wins) [BusinessWeek]
(Photo: Getty)