During National Consumer Protection Week, Consumer Advocates Warn About Harms of Forced Arbitration

Release Date: 
March 7, 2013
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(WASHINGTON, DC) ─ More than ever, consumers are forced to surrender their rights every time they obtain a product or service, including credit cards, checking accounts, cell phone service and even jobs.  To truly honor and recognize the importance of consumer protection laws, it is time for Congress and  federal agencies to eliminate forced arbitration, advocates for consumers announced during National Consumer Protection Week. National Association of Consumer Advocates (NACA), National Consumer Law Center (NCLC), Public Citizen and U.S. PIRG join together to promote awareness and advocate a ban on forced arbitration, a corporate practice that blocks numerous state and federal protections.

And after a 2011 U.S. Supreme Court ruling in AT&T Mobility LLC v. Concepcion, more than 100 potential class actions have been dismissed and sent to arbitration, according to a new analysis released today by Public Citizen. This has happened even when the judge states that the cases may be best suited to proceed as class actions. In Concepcion, the court vastly expanded the reach of arbitration by ruling that corporations could block the consumers they force into arbitration from pursuing cases as a class.  Click here to continue reading.