Forced Arbitration in Consumer Contracts

Chicago, Illinois

We often have to turn away consumers who are the victims of small overcharges and fraud by various consumer businesses like cell phone providers, cable companies, credit card companies, etc., because the fine print in their contract contains an arbitration clause and/or a class action waiver. Around the firm, we often refer to arbitration clauses as ” a license to steal.” The author in the article linked below refers to them as a “get out of jail free card.” Whatever name you give them, something needs to be done to prevent their use in consumer contracts. It is going to take action by Congress or the CFPB to prevent the continued use of these anti-consumer clauses.