Ellen Weiss has just pointed out another little-understood legal device that big businesses are using to squeeze average Americans: the arbitration clause. Credit card companies have adopted them wholesale, and, as Ellen’s example shows, they are spreading to other consumer contracts. Why do companies want arbitration clauses? There are two reasons: The companies win more disputes when arbitrators decide them, and arbitration clauses insulate companies from class action lawsuits that let consumers ban together to enforce their rights.
This is a companion discussion topic for the original entry at https://talkingpointsmemo.com/?p=1250620