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Forced Arbitration

SEC Commissioner suggests that SEC will allow corporations to put mandatory arbitration clauses into their charters to avoid shareholder securities fraud class actions

August 29, 2017

A brief remark from SEC Commissioner Michael Piwowar during a July 17, 2017, Q&A suggests that he believes the U.S. Securities and Exchange Commission might soon allow companies to introduce mandatory arbitration clauses into their corporate charters.

Categories: Class Action Facts, Forced Arbitration

Oregon Attorney General Ellen Rosenblum and 19 other State Attorney Generals send letter to Congress backing CFPB’s Mandatory Arbitration Rule

August 10, 2017

The Multi-State letter opposes restrictions Congress is contemplating on a new rule passed by the CFPB that would prohibit banks from requiring consumers to waive their right to seek redress in court.

Categories: Class Actions of Interest, Legislation, Consumer Protection, Forced Arbitration

Economic Policy Institute issues report saying average consumer does better in a class action than in arbitration

August 1, 2017

The Economic Policy Institute just released a fact sheet debunking industry claims that consumers recover more money in arbitration than class actions.

Categories: Class Action Facts, Consumer Protection, Forced Arbitration

Republicans move to invalidate new CFPB rule banning forced arbitration

July 21, 2017

On July 20, 2017, Congressional Republicans began a process to attempt to eliminate a Consumer Financial Protection Bureau rule that stops companies from putting class action bans in their arbitration clauses and makes it easier for consumers to sue banks, credit card firms, payday lenders and other service providers in court.

Categories: Breaking News, Class Action Facts, Legislation, Consumer Protection, Forced Arbitration

Article in The Hill explains why the new CFPB banning mandatory arbitration is a good thing

July 13, 2017

Paul Bland has written an excellent article in The Hill that reviews the background behind the publication of the new CFPB rule banning mandatory arbitration, and addresses the merits and criticisms of the new rule.

Categories: Breaking News, Class Action Facts, Consumer Protection, Forced Arbitration

CFPB issues rule banning mandatory arbitration agreements in consumer finance documents

July 12, 2017

On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) announced a new rule to ban companies from using mandatory arbitration clauses to deny groups of people their day in court.

Categories: Breaking News, Class Action Facts, Class Actions of Interest, Consumer Protection, Forced Arbitration

U.S. Justice Department switches sides in NLRB case before Supreme Court

June 20, 2017

The Department of Justice announced on June 16, 2017 that it will switch sides in a Supreme Court case, dropping its previous support for workers to throw its weight behind management.

Categories: Class Actions of Interest, Legislation, Forced Arbitration

CBS News does great piece on how forced arbitration harms consumers

May 18, 2017

CBS News recently published an article on how forced arbitration harms consumers.

Categories: Consumer Protection, Forced Arbitration

BBC World News connects passenger being dragged off of United Airlines plane to unequal bargaining power between consumers and corporations in America as a result of forced arbitration clauses

April 12, 2017

On the April 11, 2017, BBC World News Program, the announcer told a reporter for the Atlantic that traditionally in the United States, if a group of consumers were being treated unfairly by a large corporation, it might result in a lawsuit.

Categories: Breaking News, Consumer Protection, Forced Arbitration

Class action alleges that Uber charges consumers for longer route than it pays drivers

April 11, 2017

A proposed class action filed in California federal court alleges that Uber’s upfront pricing model charges passengers a higher fare based on a longer route, but requires drivers to take the shortest route, allowing Uber to pocket the difference.

Categories: Class Actions of Interest, Consumer Protection, Forced Arbitration

California Supreme Court says arbitration clauses that bar injunctive relief are unenforceable

April 6, 2017

On April 6, 2017, the California Supreme Court unanimously held that an arbitration agreement that waives the right to public injunctive relief is contrary to California public policy and therefore is unenforceable under California law.

Categories: Breaking News, Class Actions of Interest, Forced Arbitration

Wells Fargo settles class action related to employees opening unauthorized accounts

April 5, 2017

Wells Fargo has agreed to pay $110 million to resolve class actions that allege bank workers opened unauthorized accounts in customers’ names or enrolled them in the bank’s services without their consent.

Categories: Class Actions of Interest, Consumer Protection, Forced Arbitration

Judge rejects Wells Fargo’s repeated bids to compel arbitration

October 18, 2016

U.S. District Judge James Lawrence King ruled this week that Wells Fargo cannot force unnamed class members’ claims into arbitration in five lawsuits arising out of alleged improper re-ordering of overdraft fees that have been consolidated in multidistrict litigation in Florida.

Categories: Class Actions of Interest, Forced Arbitration

Wells Fargo got away with setting up sham accounts for 5 years because of forced arbitration clauses

September 21, 2016

According to a story published in the Hill, Wells Fargo’s scandalous practice of secretly opening more than 2 million sham deposit and credit card accounts dragged on for at least five years, because Wells Fargo contract provisions blocked consumers from suing the bank in court.

Categories: Class Action Facts, Consumer Protection, Forced Arbitration

Respected US District Judge Jed Rakoff refuses to enforce Uber’s arbitration and class action waiver clauses

August 4, 2016

In a strongly worded decision, Judge Rakoff began his opinion by raising suspicion about whether the Federal Arbitration Act could properly be applied in today’s commercial context:

Categories: Groundbreaking Decisions, Forced Arbitration

New York Times article suggests forced arbitration clauses (like those in Gretchen Carlson case) protect sexual predators

August 3, 2016

Here is the link to a New York Times article that is critical of the Forced Arbitration Clause in Gretchen Carlson’s Fox News Contract.

Categories: Forced Arbitration

Portland consumers must opt-out of Biketown forced arbitration clause in first 30 days

July 25, 2016

The Oregonian is reporting that people that sign up to use the Biketown bikes in Portland, Oregon have 30 days to opt out of the Forced Arbitration Clause in the sign-up agreement.

Categories: Forced Arbitration

Democratic Platform To Limit Forced Arbitration

July 21, 2016

Preparations are underway for the Democratic Convention in Philadelphia. The Draft Democratic Platform unequivocally supports an individual’s right to his or her day in court and efforts to limit forced arbitration clauses in employment and service contracts.

Categories: Forced Arbitration

Roger Ailes to use forced arbitration to defend himself in sexual harassment case

July 11, 2016

According to the Washington Post, Roger Ailes is using a forced arbitration clause in Gretchen Carlson’s employment agreement to avoid having the facts about his alleged sexual harassment aired in public.

Categories: Breaking News, Forced Arbitration

Like Comcast, Google Fiber is including class action waivers in its customer agreements

June 22, 2016

Google Fiber has added new terms to its customer agreements. Like other large Internet service providers, customers who want to sue Google Fiber must now instead submit to arbitration.

Categories: Consumer Protection, Forced Arbitration