mandatory binding arbitration

Sen. Al Franken

Congress Set Up For Showdown Over Consumers’ Ability To Sue Corporations

A subject that many Americans don’t even know about — until it’s too late for them to do anything — is now shaping up to be a battleground between lawmakers in both the House and Senate, where two very different sets of legislation will go head to head to determine whether or not companies can strip their customers of their constitutional right to file a lawsuit in court — and their First Amendment right to speak freely. [More]

Kārlis Dambrāns

Appeals Court Says Samsung Can’t Use In-Box Warranty Booklet To Strip Customers Of Legal Rights

Last week, we used the example of a Stormtrooper Snuggie to show how easy it is for companies to take away customers’ constitutional rights with just a slip of paper placed inside the box. Now a federal appeals court has ruled that Samsung can’t use an in-the-box warranty booklet to derail a class-action lawsuit. [More]

Your New Stormtrooper Snuggie Comes With A Surprise: It Strips You Of Your Right To File A Lawsuit

Your New Stormtrooper Snuggie Comes With A Surprise: It Strips You Of Your Right To File A Lawsuit

Until the other day, Consumerist reader Jeff had completely forgotten about that cute Stormtrooper Snuggie someone gave him for Christmas. When he finally opened the box, there was the Star Wars-themed sleeved blanket, and a slip of paper giving him the bad news: He had, without doing a thing, given up his right to sue the Snuggie’s manufacturer. [More]

Adam Fagen

Did You Get A Gadget For Christmas? It’s Time To Opt Out Of Mandatory Arbitration!

Did you receive any fun gadgets as holiday gifts? If so, it’s time to check read over that user agreement most people usually ignore to see if you have signed away your legal rights, or if you still have a chance to protect your right to a day in court. [More]

Freaktography

Court: Nursing Homes Can Continue Stripping New Residents Of Their Right To Day In Court

In September, the federal Centers for Medicare & Medicaid Services (CMS) issued a new rule that would prevent most nursing homes and other long-term care facilities from using forced arbitration to strip new residents of their right to file lawsuits against these companies. The industry soon fired back by doing the very thing it doesn’t want its customers to do: filing a lawsuit. This morning, the judge in the case granted the industry’s request for a preliminary injunction preventing the new rule from being enforced. [More]

Judge: Airbnb Can Force Users’ Racial Discrimination Claims Out Of Courtroom

Judge: Airbnb Can Force Users’ Racial Discrimination Claims Out Of Courtroom

A large — and growing — number of companies use arbitration clauses in their overlong, legalese-stuffed customer agreements to prevent customers from bringing lawsuits and joining together in class actions, but can that arbitration agreement be used to avoid legal liability for possible violations of federal civil rights law? According to one federal judge, yes. [More]

Jason Cook

FCC To Propose Rules That Could Restore Consumers’ Right To Sue Phone, Broadband Providers

While the big headline of this morning’s monthly FCC meeting was the release of the Commission’s final rules on broadband privacy, the agency’s leadership also let it be known that it’s planning to take on one of the industry’s most controversial issues: The right of consumers to have their day in court. [More]

More Companies Turn To Mandatory Arbitration: CreditKarma, Redbox, Kitty Bed Maker

More Companies Turn To Mandatory Arbitration: CreditKarma, Redbox, Kitty Bed Maker

People in a wide variety of circumstances, from drivers signing up to work for Uber to senior citizens entering a nursing home, sign mandatory binding arbitration agreements. Two popular online services have recently started to require that customer disputes go to arbitration, and a reader sent along a product purchased online — a cat bed — that came with a arbitration agreement of its own. [More]

Nursing Home Industry Files Lawsuit To Keep Preventing Patients From Filing Lawsuits

Nursing Home Industry Files Lawsuit To Keep Preventing Patients From Filing Lawsuits

Last month, the federal government issued new rules for nursing homes, barring most long-term care facilities from using forced arbitration agreements to stop new residents from filing lawsuits against the homes. Now nursing home operators and industry trade groups are challenging that rule by doing the one thing they want to prevent their patients from doing: going to court. [More]

Freaktography

New Rule Will Stop Many Nursing Homes From Stripping Residents Of Their Right To Sue

As we’ve written about previously, some nursing homes and other long-term care facilities use forced arbitration contracts to prevent their residents bringing a legal action against the home in a court of law. Today, the Department of Health and Human Services issued a new rule that will prohibit long-term care facilities that accept Medicare or Medicaid from forcing residents into arbitration. [More]

Uber

Appeals Court: Sorry Uber Drivers, You Signed Away Your Right To Sue Company

Just like a growing number of companies are quietly stripping consumers of their right to a jury trial, so too are employers using workers’ contracts to insert clauses that prevent them from bringing lawsuits in court. Yesterday, a federal appeals court ruled that most Uber drivers signed away their rights to pursue legal action against the company, putting multiple lawsuits — and a potential $100 million class action settlement — at risk. [More]

SarahMcGowen

Lawyer: Employers Should Take Away Workers’ Right To Sue; Arbitrators “Know Where Their Bread & Butter Comes From”

The Consumer Financial Protection Bureau is currently working on rules to stop banks, credit card issuers, and others from forcing customers to sign away their right to a jury trial. Opponents claim that this change will only benefit trial lawyers, but some candid advice from one lawyer shows exactly why these protections are needed — and who really stands to benefit. [More]

Adam Fagen

9-In-10 Big Banks Strip Customers Of Their Right To Jury Trial

If you ask someone on the street if they should have the right to sue their bank over something like an illegal overdraft fee, nearly everyone you speak to will invariably say yes. But a new report confirms that nearly all big banks are forcing customers to give up their right to a jury trial. [More]