Arbitration Everywhere, Stacking the Deck of Justice
Janill Gilbert stashed this in Corporate Control
Alan Carlson, a restaurant owner and chef, was involved in a 2003 class-action suit against American Express. A decade later, a Supreme Court ruling enabled American Express to prevent merchants from bringing class actions.
On Page 5 of a credit card contract used by American Express, beneath an explainer on interest rates and late fees, past the details about annual membership, is a clause that most customers probably miss. If cardholders have a problem with their account, American Express explains, the company “may elect to resolve any claim by individual arbitration.”
Those nine words are at the center of a far-reaching power play orchestrated by American corporations, an investigation by The New York Times has found.
By inserting individual arbitration clauses into a soaring number of consumer and employment contracts, companies like American Express devised a way to circumvent the courts and bar people from joining together in class-action lawsuits, realistically the only tool citizens have to fight illegal or deceitful business practices.
*Huge article, go to link to read:
Stashed in: SCOTUS
"Some state judges have called the class-action bans a “get out of jail free” card, because it is nearly impossible for one individual to take on a corporation with vast resources."
"By banning class actions, companies have essentially disabled consumer challenges to practices like predatory lending, wage theft and discrimination, court records show."
“This is among the most profound shifts in our legal history,” William G. Young, a federal judge in Boston who was appointed by President Ronald Reagan, said in an interview. “Ominously, business has a good chance of opting out of the legal system altogether and misbehaving without reproach.”
“May elect to resolve any claim by individual arbitration” does seem pretty insidious.
10:22 AM Nov 03 2015