Monday, May 6, 2013

Forced Arbitration: Killing the Right to Sue Big Companies, One TOS Agreement at a Time

http://www.dailyfinance.com/on/forced-arbitration-killing-class-action-lawsuits-tos-agreements/

To celebrate National Consumer Protection Week, we recently highlighted a few quick actions that consumers can take to protect themselves. But the sad fact is that the most potent consumer protection tool may soon be all but extinct.

We're referring to the class-action lawsuit, which for decades has allowed groups of wronged Americans to band together, pool their resources and take on companies ranging from Exxon Mobil to Toyota. But many companies are now preemptively ducking such lawsuits by getting consumers to sign away their right to file them.

So-called forced arbitration clauses say that in the event of a dispute, you won't be able to file a class-action suit. Instead, your dispute will be settled one-on-one in a private arbitration forum. These clauses are commonly inserted into terms of service agreements, which you must agree to if you want to use the product or service.
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