Since 2011, when the U.S. Supreme Court affirmed that it was perfectly okay for companies to take away a consumer’s right to sue — and their ability to join other wronged consumers in a class action — by inserting a paragraph or two of text deep in lengthy, unchangeable contracts, the rush has been on for almost every major retailer, wireless provider, cable company, and financial institution to slap these mandatory binding arbitration clauses into their customer agreements. Now one petition is gathering signatures, calling on the nation’s largest banks to put an end to the practice. [More]
Supreme Court Deals Another Blow To Consumers, Lets Companies Use Forced Arbitration To Skirt The Law
The Supreme Court has once again ruled that forced arbitration clauses in contracts are enforceable, and that they can be used to preempt class-action lawsuits, even in cases where class-action suits are the only economically feasible way for the plaintiff to make its case. [More]
A year ago this week, the U.S. Supreme Court issued a landmark ruling in the AT&T Mobility v. Concepcion case. It decided that a company could force customers into arbitration — and effectively pre-empt any class-action lawsuits — by including a tiny clause in their contracts. At the time, AT&T had the gall to claim that this was all for the benefit of you, the consumer, but a new study proves what you probably already guessed: AT&T was full of it.