March 17, 2022
For Immediate Release:
U.S. House Votes to End Forced Arbitration in Consumer, Worker Contracts
FAIR Act restores consumers’ and workers’ right to go to court when harmed.
Washington D.C. – The National Association of Consumer Advocates (NACA) commends the U.S. House for passing H.R. 963, the bipartisan Forced Arbitration Injustice Repeal (FAIR) Act (222-209). The FAIR Act would end the use of terms in fine-print contracts that prohibit consumers, workers, and small businesses harmed by corporate misconduct from pursuing claims in court and that force them to bring complaints in private arbitration.
For too long the courthouse doors have been shut to millions because of the widespread use of the one-sided corporate forced arbitration clauses in take-it-or-leave-it contracts,” said Christine Hines, NACA’s legislative director. “The FAIR Act will eliminate the rigged forced arbitration system, ensuring that arbitration is voluntary, and that consumers and workers can choose where and how to get their complaints heard, including and especially through the public court system.”
The FAIR Act’s passage in the U.S. House follows President Joe Biden’s signing of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act on March 3, which ensures that survivors of sexual assault and sexual harassment will be able to get their claims heard in court instead of being forced into private, secret arbitration proceedings. The FAIR Act, which is a more comprehensive bill, would reinstate the same rights for millions of people, including servicemembers and veterans, older Americans, and working families.
The bill heads to the Senate next.