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.
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.
The Economic Policy Institute just released a fact sheet debunking industry claims that consumers recover more money in arbitration than class actions.
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.
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.
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.
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.
CBS News recently published an article on how forced arbitration harms consumers.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
