We have blogged in this space many times about mandatory arbitration clauses and their negative impacts on consumers. The Supreme Court has upheld these types of clauses in consumer contracts on several occasions in the recent past. Now, according to a recent article by Mandy Walker in Consumer Reports, Senators Patrick Leahy (D-Vermont) and Al Franken (D-Minnesota) have proposed legislation that would “prevent companies from imposing forced arbitration in cases covered by consumer protection laws, as well as in employment discrimination and other civil rights matters.”
“This bill restores the Federal Arbitration Act to what Congress intended, arbitration as a way for businesses to decide to handle their business disputes, but not as a way to insulate their misconduct from accountability to consumers,” said George Slover, senior policy counsel at Consumers Union.
I am hopeful that the legislation garners support, but am skeptical given the current make-up of our Congress.
Best of luck to Senators Leahy and Franken.
The full article can be read here.
The full text of the proposed legislation can be read here.
Photo Credit: Mesut Dogan