Forced arbitration: Difference between revisions

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'''~~[[wikipedia:~~Arbitration|Forced arbitration]]''' is a practice in which businesses can require their customers to resolve disputes through arbitration, instead of a traditional court system. Per Wikipedia: "Arbitration is a formal method of dispute resolution involving a third party neutral who makes a binding decision."

'''{{Wplink|Arbitration|Forced arbitration}}''' is a practice in which businesses can require their customers to resolve disputes through arbitration instead of a traditional court system. Per Wikipedia: "Arbitration is a formal method of dispute resolution involving a third party neutral who makes a binding decision."

==Origins==

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==How it works==

Businesses will typically add an arbitration clause to their [[Terms of Service]] or Terms of Use. This clause generally outlines how disputes are handled between the consumer and the business. A good example of a typical arbitration clause can be found in [[Instagram]]'s Terms of Use, which, as of January 6, 2025, is under Section 7.4 - How We Will Handle Disputes:<ref name=":0">{{Cite web |title=Terms of Use |url=https://help.instagram.com/581066165581870/ |url-status=live |access-date=4 May 2025 |website=[[Instagram]] |archive-url=http://web.archive.org/web/20260222100652/https://help.instagram.com/581066165581870/ |archive-date=22 Feb 2026}}</ref><blockquote>"Except as provided below, you and we agree that any cause of action, legal claim, or dispute between you and us arising out of or related to these Terms or Instagram ("claim(s)") must be resolved by arbitration on an individual basis. [[Class action~~|Class actions]]~~ and class arbitrations are not permitted; you and we may bring a claim only on your own behalf and cannot seek relief that would affect other Instagram users."</blockquote>Currently, in the United States, arbitration clauses such as this one are legal under the [[Federal Arbitration Act]] (FAA).<ref name=":2">{{Cite web |date=30 Jul 1947 |title=TITLE 9—ARBITRATION |url=https://www.govinfo.gov/content/pkg/USCODE-2019-title9/html/USCODE-2019-title9.htm |url-status=live |access-date=4 May 2025 |website=www.govinfo.gov |archive-url=http://web.archive.org/web/20260219114958/https://www.govinfo.gov/content/pkg/USCODE-2019-title9/html/USCODE-2019-title9.htm |archive-date=19 Feb 2026}}</ref> Efforts have been made, however, to prohibit forced arbitration, most notably the [[Forced Arbitration Injustice Repeal]] (FAIR) Act of 2023.<ref>{{Cite web |date=27 Apr 2023 |title=S.1376 - Forced Arbitration Injustice Repeal Act |url=https://www.congress.gov/bill/118th-congress/senate-bill/1376 |url-status=live |access-date=4 May 2025 |website=www.congress.gov |archive-url=http://web.archive.org/web/20251110183101/https://www.congress.gov/bill/118th-congress/senate-bill/1376 |archive-date=10 Nov 2025}}</ref>

Businesses will typically add an arbitration clause to their [[Terms of Service]] or Terms of Use. This clause generally outlines how disputes are handled between the consumer and the business. A good example of a typical arbitration clause can be found in [[Instagram]]'s Terms of Use, which, as of January 6, 2025, is under Section 7.4 - How We Will Handle Disputes:<ref name=":0">{{Cite web |title=Terms of Use |url=https://help.instagram.com/581066165581870/ |url-status=live |access-date=4 May 2025 |website=[[Instagram]] |archive-url=http://web.archive.org/web/20260222100652/https://help.instagram.com/581066165581870/ |archive-date=22 Feb 2026}}</ref><blockquote>"Except as provided below, you and we agree that any cause of action, legal claim, or dispute between you and us arising out of or related to these Terms or Instagram ("claim(s)") must be resolved by arbitration on an individual basis. {{Wplink|Class action}}s and class arbitrations are not permitted; you and we may bring a claim only on your own behalf and cannot seek relief that would affect other Instagram users."</blockquote>Currently, in the United States, arbitration clauses such as this one are legal under the [[Federal Arbitration Act]] (FAA).<ref name=":2">{{Cite web |date=30 Jul 1947 |title=TITLE 9—ARBITRATION |url=https://www.govinfo.gov/content/pkg/USCODE-2019-title9/html/USCODE-2019-title9.htm |url-status=live |access-date=4 May 2025 |website=www.govinfo.gov |archive-url=http://web.archive.org/web/20260219114958/https://www.govinfo.gov/content/pkg/USCODE-2019-title9/html/USCODE-2019-title9.htm |archive-date=19 Feb 2026}}</ref> Efforts have been made, however, to prohibit forced arbitration, most notably the [[Forced Arbitration Injustice Repeal]] (FAIR) Act of 2023.<ref>{{Cite web |date=27 Apr 2023 |title=S.1376 - Forced Arbitration Injustice Repeal Act |url=https://www.congress.gov/bill/118th-congress/senate-bill/1376 |url-status=live |access-date=4 May 2025 |website=www.congress.gov |archive-url=http://web.archive.org/web/20251110183101/https://www.congress.gov/bill/118th-congress/senate-bill/1376 |archive-date=10 Nov 2025}}</ref>

The ~~[[wikipedia:United_Nations~~|United Nations]] has published a guideline for consumer protections in 2016, which lists the following under IV 11(c):<ref>{{Cite web |date=2016 |title=United Nations Guidelines for Consumer Protection |url=https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf |url-status=live |access-date=4 May 2025 |website=unctad.org |archive-url=http://web.archive.org/web/20260222170649/https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf |archive-date=22 Feb 2026}}</ref><blockquote>"Businesses should provide complete, accurate and not misleading information regarding the goods and services, terms, conditions, applicable fees and final costs to enable consumers to take informed decisions. Businesses should ensure easy access to this information, especially to the key terms and conditions"</blockquote>

The {{Wplink|United Nations}} has published a guideline for consumer protections in 2016, which lists the following under IV 11(c):<ref>{{Cite web |date=2016 |title=United Nations Guidelines for Consumer Protection |url=https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf |url-status=live |access-date=4 May 2025 |website=unctad.org |archive-url=http://web.archive.org/web/20260222170649/https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf |archive-date=22 Feb 2026}}</ref><blockquote>"Businesses should provide complete, accurate and not misleading information regarding the goods and services, terms, conditions, applicable fees and final costs to enable consumers to take informed decisions. Businesses should ensure easy access to this information, especially to the key terms and conditions"</blockquote>

==Why it is a problem==

===Revocation of rights===

The practice of forced arbitration is one that is designed to revoke the rights of the consumer. In this case, the consumer's right to sue or participate in a [[class action]] against a business. Instead, the consumer must work with an arbiter of the businesses' choosing behind closed doors to resolve claims, which is widely believed to result in biased outcomes.

The practice of forced arbitration is one that is designed to revoke the rights of the consumer. In this case, the consumer's right to sue or participate in a class action against a business. Instead, the consumer must work with an arbiter of the businesses' choosing behind closed doors to resolve claims, which is widely believed to result in biased outcomes.

====Bypassing of constitutional rights====

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===Bricking until agreement===

[[File:~~BadPiggiesArbitration~~.png|thumb|An example of forced arbitration, where the user has to agree to arbitration, regardless of if the software was previously installed on their device]]

[[File:Bad Piggies forced arbitration.png|thumb|An example of forced arbitration, where the user has to agree to arbitration, regardless of if the software was previously installed on their device]]

For digital software in particular, they can be retroactively amended to require the user to agree to forced arbitration, while blocking the user from accessing the content they paid for until they agree to this binding arbitration. In the case of the mobile game ''Bad Piggies'', published by [[Rovio]], regardless of if the end user chose to not update their game or had the game previously installed since before the publisher instituted arbitration, said user is incapable of playing the game until they agree to binding arbitration.<ref>{{Cite web |last=u/JamesTDG |date=Oct 30, 2025 |title=r/badpiggies - God damn it, Rovio, you put arbitration into the game I ALREADY PAID FOR |url=https://www.reddit.com/r/badpiggies/comments/1oklx98/god_damn_it_rovio_you_put_arbitration_into_the/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button |access-date=Oct 30, 2025 |website=Reddit |archive-url=https://web.archive.org/web/20260223043639/https://old.reddit.com/r/badpiggies/comments/1oklx98/god_damn_it_rovio_you_put_arbitration_into_the/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button |archive-date=23 Feb 2026}}</ref>

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*Yahoo Terms of Service - Section 14.2.b "'''BINDING ARBITRATION AGREEMENT'''" <ref>{{Cite web |title=Yahoo Terms of Service {{!}} Yahoo |url=https://legal.yahoo.com/us/en/yahoo/terms/otos/index.html |url-status=live |archive-url=https://web.archive.org/web/20250315082242/https://legal.yahoo.com/us/en/yahoo/terms/otos/index.html |archive-date=2025-03-15 |access-date=2025-03-15 |website=Yahoo}}</ref>

*Zenimax Media (Bethesda) has an arbitration agreement that can only be opted out of within 30 days, ''by mail''.<ref>{{Cite web |title=ZeniMax Terms of Service |url=https://www.zenimax.com/en/legal/terms-of-service |access-date=2025-05-31 |website=ZeniMax Media |archive-url=http://web.archive.org/web/20251231215938/https://www.zenimax.com/en/legal/terms-of-service |archive-date=31 Dec 2025}}</ref>

*[[Zoom]]'s Terms of Service, Section 27.1, says: "You and Zoom agree that any dispute or claim between you and Zoom arising out of or relating to this Agreement or the Services (a “Dispute”), including any related software, hardware, integrations, advertising or marketing communications, your account, or any aspects of your relationship or transactions with Zoom, will be resolved by binding arbitration, rather than in court."<ref>{{Cite web |date=11 Aug 2023 |title=Zoom Terms of Service |url=https://www.zoom.com/it/trust/terms/?cms_guid=false&lang=null |url-status=live |access-date=4 May 2025 |website=[[Zoom]] |archive-url=http://web.archive.org/web/20251021031940/https://www.zoom.com/it/trust/terms/?cms_guid=false&lang=null |archive-date=21 Oct 2025}}</ref>

* [[Zoom]]'s Terms of Service, Section 27.1, says: "You and Zoom agree that any dispute or claim between you and Zoom arising out of or relating to this Agreement or the Services (a “Dispute”), including any related software, hardware, integrations, advertising or marketing communications, your account, or any aspects of your relationship or transactions with Zoom, will be resolved by binding arbitration, rather than in court."<ref>{{Cite web |date=11 Aug 2023 |title=Zoom Terms of Service |url=https://www.zoom.com/it/trust/terms/?cms_guid=false&lang=null |url-status=live |access-date=4 May 2025 |website=[[Zoom]] |archive-url=http://web.archive.org/web/20251021031940/https://www.zoom.com/it/trust/terms/?cms_guid=false&lang=null |archive-date=21 Oct 2025}}</ref>

* Hubitat's Terms of Service, Section 13 "ARBITRATION/WAIVER OF JURY TRIAL." <ref>{{Cite web |date=26 Mar 2026 |title=Hubitat Terms of Service |url=https://hubitat.com/terms-of-service |archive-url=https://web.archive.org/web/20260326135254/https://hubitat.com/terms-of-service |archive-date=26 Mar 2026 |access-date=26 Mar 2026 |website=Hubitat}}</ref>

==Legal cases==

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[[Category:Common license terms]]

[[Category:Common terms]]

[[Category:Theme]]

@@ Line 1: / Line 1: @@
-'''[[wikipedia:Arbitration|Forced arbitration]]''' is a practice in which businesses can require their customers to resolve disputes through arbitration, instead of a traditional court system. Per Wikipedia: "Arbitration is a formal method of dispute resolution involving a third party neutral who makes a binding decision."
+'''{{Wplink|Arbitration|Forced arbitration}}''' is a practice in which businesses can require their customers to resolve disputes through arbitration instead of a traditional court system. Per Wikipedia: "Arbitration is a formal method of dispute resolution involving a third party neutral who makes a binding decision."
 ==Origins==
@@ Line 9: / Line 9: @@
 ==How it works==
-Businesses will typically add an arbitration clause to their [[Terms of Service]] or Terms of Use. This clause generally outlines how disputes are handled between the consumer and the business. A good example of a typical arbitration clause can be found in [[Instagram]]'s Terms of Use, which, as of January 6, 2025, is under Section 7.4 - How We Will Handle Disputes:<ref name=":0">{{Cite web |title=Terms of Use |url=https://help.instagram.com/581066165581870/ |url-status=live |access-date=4 May 2025 |website=[[Instagram]] |archive-url=http://web.archive.org/web/20260222100652/https://help.instagram.com/581066165581870/ |archive-date=22 Feb 2026}}</ref><blockquote>"Except as provided below, you and we agree that any cause of action, legal claim, or dispute between you and us arising out of or related to these Terms or Instagram ("claim(s)") must be resolved by arbitration on an individual basis. [[Class action|Class actions]] and class arbitrations are not permitted; you and we may bring a claim only on your own behalf and cannot seek relief that would affect other Instagram users."</blockquote>Currently, in the United States, arbitration clauses such as this one are legal under the [[Federal Arbitration Act]] (FAA).<ref name=":2">{{Cite web |date=30 Jul 1947 |title=TITLE 9—ARBITRATION |url=https://www.govinfo.gov/content/pkg/USCODE-2019-title9/html/USCODE-2019-title9.htm |url-status=live |access-date=4 May 2025 |website=www.govinfo.gov |archive-url=http://web.archive.org/web/20260219114958/https://www.govinfo.gov/content/pkg/USCODE-2019-title9/html/USCODE-2019-title9.htm |archive-date=19 Feb 2026}}</ref> Efforts have been made, however, to prohibit forced arbitration, most notably the [[Forced Arbitration Injustice Repeal]] (FAIR) Act of 2023.<ref>{{Cite web |date=27 Apr 2023 |title=S.1376 - Forced Arbitration Injustice Repeal Act |url=https://www.congress.gov/bill/118th-congress/senate-bill/1376 |url-status=live |access-date=4 May 2025 |website=www.congress.gov |archive-url=http://web.archive.org/web/20251110183101/https://www.congress.gov/bill/118th-congress/senate-bill/1376 |archive-date=10 Nov 2025}}</ref>
+Businesses will typically add an arbitration clause to their [[Terms of Service]] or Terms of Use. This clause generally outlines how disputes are handled between the consumer and the business. A good example of a typical arbitration clause can be found in [[Instagram]]'s Terms of Use, which, as of January 6, 2025, is under Section 7.4 - How We Will Handle Disputes:<ref name=":0">{{Cite web |title=Terms of Use |url=https://help.instagram.com/581066165581870/ |url-status=live |access-date=4 May 2025 |website=[[Instagram]] |archive-url=http://web.archive.org/web/20260222100652/https://help.instagram.com/581066165581870/ |archive-date=22 Feb 2026}}</ref><blockquote>"Except as provided below, you and we agree that any cause of action, legal claim, or dispute between you and us arising out of or related to these Terms or Instagram ("claim(s)") must be resolved by arbitration on an individual basis. {{Wplink|Class action}}s and class arbitrations are not permitted; you and we may bring a claim only on your own behalf and cannot seek relief that would affect other Instagram users."</blockquote>Currently, in the United States, arbitration clauses such as this one are legal under the [[Federal Arbitration Act]] (FAA).<ref name=":2">{{Cite web |date=30 Jul 1947 |title=TITLE 9—ARBITRATION |url=https://www.govinfo.gov/content/pkg/USCODE-2019-title9/html/USCODE-2019-title9.htm |url-status=live |access-date=4 May 2025 |website=www.govinfo.gov |archive-url=http://web.archive.org/web/20260219114958/https://www.govinfo.gov/content/pkg/USCODE-2019-title9/html/USCODE-2019-title9.htm |archive-date=19 Feb 2026}}</ref> Efforts have been made, however, to prohibit forced arbitration, most notably the [[Forced Arbitration Injustice Repeal]] (FAIR) Act of 2023.<ref>{{Cite web |date=27 Apr 2023 |title=S.1376 - Forced Arbitration Injustice Repeal Act |url=https://www.congress.gov/bill/118th-congress/senate-bill/1376 |url-status=live |access-date=4 May 2025 |website=www.congress.gov |archive-url=http://web.archive.org/web/20251110183101/https://www.congress.gov/bill/118th-congress/senate-bill/1376 |archive-date=10 Nov 2025}}</ref>
-The [[wikipedia:United_Nations|United Nations]] has published a guideline for consumer protections in 2016, which lists the following under IV 11(c):<ref>{{Cite web |date=2016 |title=United Nations Guidelines for Consumer Protection |url=https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf |url-status=live |access-date=4 May 2025 |website=unctad.org |archive-url=http://web.archive.org/web/20260222170649/https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf |archive-date=22 Feb 2026}}</ref><blockquote>"Businesses should provide complete, accurate and not misleading information regarding the goods and services, terms, conditions, applicable fees and final costs to enable consumers to take informed decisions. Businesses should ensure easy access to this information, especially to the key terms and conditions"</blockquote>
+The {{Wplink|United Nations}} has published a guideline for consumer protections in 2016, which lists the following under IV 11(c):<ref>{{Cite web |date=2016 |title=United Nations Guidelines for Consumer Protection |url=https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf |url-status=live |access-date=4 May 2025 |website=unctad.org |archive-url=http://web.archive.org/web/20260222170649/https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf |archive-date=22 Feb 2026}}</ref><blockquote>"Businesses should provide complete, accurate and not misleading information regarding the goods and services, terms, conditions, applicable fees and final costs to enable consumers to take informed decisions. Businesses should ensure easy access to this information, especially to the key terms and conditions"</blockquote>
 ==Why it is a problem<!-- Extra reading:  https://www.congress.gov/congressional-report/116th-congress/house-report/204/1 -->==
 ===Revocation of rights===
-The practice of forced arbitration is one that is designed to revoke the rights of the consumer. In this case, the consumer's right to sue or participate in a [[class action]] against a business. Instead, the consumer must work with an arbiter of the businesses' choosing behind closed doors to resolve claims, which is widely believed to result in biased outcomes.
+The practice of forced arbitration is one that is designed to revoke the rights of the consumer. In this case, the consumer's right to sue or participate in a class action against a business. Instead, the consumer must work with an arbiter of the businesses' choosing behind closed doors to resolve claims, which is widely believed to result in biased outcomes.
 ====Bypassing of constitutional rights<!-- Sources to read before integration:  https://scholars.law.unlv.edu/facpub/266/  https://www.clearygottlieb.com/-/media/files/arbitration-and-the-us-constitution-the-impact-of-federalism-and-due-process-on-the-enforcement-of-arbitration-agreements-and-awards-in-the-united-states.pdf  https://digitalcommons.law.uga.edu/fac_artchop/482/ -->====
@@ Line 33: / Line 33: @@
 ===Bricking until agreement===
-[[File:BadPiggiesArbitration.png|thumb|An example of forced arbitration, where the user has to agree to arbitration, regardless of if the software was previously installed on their device]]
+[[File:Bad Piggies forced arbitration.png|thumb|An example of forced arbitration, where the user has to agree to arbitration, regardless of if the software was previously installed on their device]]
 For digital software in particular, they can be retroactively amended to require the user to agree to forced arbitration, while blocking the user from accessing the content they paid for until they agree to this binding arbitration. In the case of the mobile game ''Bad Piggies'', published by [[Rovio]], regardless of if the end user chose to not update their game or had the game previously installed since before the publisher instituted arbitration, said user is incapable of playing the game until they agree to binding arbitration.<ref>{{Cite web |last=u/JamesTDG |date=Oct 30, 2025 |title=r/badpiggies - God damn it, Rovio, you put arbitration into the game I ALREADY PAID FOR |url=https://www.reddit.com/r/badpiggies/comments/1oklx98/god_damn_it_rovio_you_put_arbitration_into_the/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button |access-date=Oct 30, 2025 |website=Reddit |archive-url=https://web.archive.org/web/20260223043639/https://old.reddit.com/r/badpiggies/comments/1oklx98/god_damn_it_rovio_you_put_arbitration_into_the/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button |archive-date=23 Feb 2026}}</ref><!-- This is TYPICALLY a no-no. Do NOT cite yourselves on the wiki! I am however the first person to post about this issue on the subreddit, so I can only cite myself here. When others post about it, I will change the ref. -->
@@ Line 56: / Line 56: @@
 *Yahoo Terms of Service - Section 14.2.b "'''BINDING ARBITRATION AGREEMENT'''" <ref>{{Cite web |title=Yahoo Terms of Service {{!}} Yahoo |url=https://legal.yahoo.com/us/en/yahoo/terms/otos/index.html |url-status=live |archive-url=https://web.archive.org/web/20250315082242/https://legal.yahoo.com/us/en/yahoo/terms/otos/index.html |archive-date=2025-03-15 |access-date=2025-03-15 |website=Yahoo}}</ref>
 *Zenimax Media (Bethesda) has an arbitration agreement that can only be opted out of within 30 days, ''by mail''.<ref>{{Cite web |title=ZeniMax Terms of Service |url=https://www.zenimax.com/en/legal/terms-of-service |access-date=2025-05-31 |website=ZeniMax Media |archive-url=http://web.archive.org/web/20251231215938/https://www.zenimax.com/en/legal/terms-of-service |archive-date=31 Dec 2025}}</ref>
-*[[Zoom]]'s Terms of Service, Section 27.1, says: "You and Zoom agree that any dispute or claim between you and Zoom arising out of or relating to this Agreement or the Services (a “Dispute”), including any related software, hardware, integrations, advertising or marketing communications, your account, or any aspects of your relationship or transactions with Zoom, will be resolved by binding arbitration, rather than in court."<ref>{{Cite web |date=11 Aug 2023 |title=Zoom Terms of Service |url=https://www.zoom.com/it/trust/terms/?cms_guid=false&lang=null |url-status=live |access-date=4 May 2025 |website=[[Zoom]] |archive-url=http://web.archive.org/web/20251021031940/https://www.zoom.com/it/trust/terms/?cms_guid=false&lang=null |archive-date=21 Oct 2025}}</ref>
+* [[Zoom]]'s Terms of Service, Section 27.1, says: "You and Zoom agree that any dispute or claim between you and Zoom arising out of or relating to this Agreement or the Services (a “Dispute”), including any related software, hardware, integrations, advertising or marketing communications, your account, or any aspects of your relationship or transactions with Zoom, will be resolved by binding arbitration, rather than in court."<ref>{{Cite web |date=11 Aug 2023 |title=Zoom Terms of Service |url=https://www.zoom.com/it/trust/terms/?cms_guid=false&lang=null |url-status=live |access-date=4 May 2025 |website=[[Zoom]] |archive-url=http://web.archive.org/web/20251021031940/https://www.zoom.com/it/trust/terms/?cms_guid=false&lang=null |archive-date=21 Oct 2025}}</ref>
+* Hubitat's Terms of Service, Section 13 "ARBITRATION/WAIVER OF JURY TRIAL." <ref>{{Cite web |date=26 Mar 2026 |title=Hubitat Terms of Service |url=https://hubitat.com/terms-of-service |archive-url=https://web.archive.org/web/20260326135254/https://hubitat.com/terms-of-service |archive-date=26 Mar 2026 |access-date=26 Mar 2026 |website=Hubitat}}</ref>
 ==Legal cases<!-- Want to add more? this baby is chalk full of them! https://www.centerjd.org/content/fact-sheet-cases-tossed-out-court-because-forced-arbitration-causes-and-class-action-bans#_ftn4 -->==
@@ Line 104: / Line 107: @@
 [[Category:Common license terms]]
+[[Category:Common terms]]
 [[Category:Theme]]