Forced Arbitration

Text Size

Forced Arbitration 

The Devil is In the Details

In the News

“Many companies - including banks, brokerage firms, insurers and cable and cell phone providers - have adopted such agreements, which generally require customers to take disputes to arbitration and give up their rights to a trial by judge or jury."
San Francisco Chronicle

“Why employers like the agreements should be obvious: they pre-empt court challenges on workplace disputes and make it harder for employees to join forces to demand better treatment. As for why employees sign, they have no choice: their jobs require it."
The New York Times

“The Supreme Court once again gave its backing this week to the notion that businesses can deny consumers the right to file lawsuits and can instead require any disputes to be mediated by an arbitrator."
Los Angeles Times
  Forced arbitration clauses are hidden in the fine print of various consumer contracts, which run the gamut from credit cards and cell phone contracts to nursing home care and employee contracts.  Consumers and employees are often forced to sign these clauses in order to receive services or get hired.  In the event of a dispute with the corporation, mandatory binding arbitration says that a consumer or an employee cannot take their case to court but instead to a private arbitration forum.  Often times the company picks the arbiter who will decide the outcome.  The consumer can never take legal action and forced arbitration applies even if a consumer is seriously injured by a product or service.  Americans overwhelmingly disapprove of forced arbitration (81 percent) when presented with all the facts.
Read how Forced arbitration hurts nursing home residents like William Kurth »  


More Background

The Facts—Forced Arbitration 

The Facts—Nursing Home Arbitration Preys on Vulnerable Seniors


Nursing Home Statistics—Nursing Homes by the Numbers
Americans’ Opinions on Forced Arbitration

Searle Institute Report Shows Forced Arbitration Favors Corporations Over Consumers 


The American Association for Justice
777 6th Street, NW, Ste 200 • Washington, DC  20001 • 800.424.2725 or 202.965.3500

© 2014 AAJ