Forced arbitration: Difference between revisions
Add guidelines on consumer protections by the united nations |
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The [[wikipedia:United_Nations|United Nations]] has published a guideline for consumer protections in 2016, which lists the following under IV 11(c):<ref>https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf</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 [[wikipedia:United_Nations|United Nations]] has published a guideline for consumer protections in 2016, which lists the following under IV 11(c):<ref>https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf</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== | ==Why it is a problem <!-- Extra reading: https://www.congress.gov/congressional-report/116th-congress/house-report/204/1 -->== | ||
===Revocation of rights=== | ===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. | ||
===Inconvenient opt-out procedure=== | ==== 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/ --> ==== | ||
Due to the out of place nature of arbitration, various rights granted by the US constitution and its amendments are entirely bypassed.<ref>{{Cite news |last=Zanville |first=Stuart |date=Sep 1, 2015 |title=Forced Arbitration |url=https://www.advocatemagazine.com/article/2015-september/forced-arbitration |url-status=live |archive-url=https://web.archive.org/web/20200921050552/https://www.advocatemagazine.com/article/2015-september/forced-arbitration |archive-date=Sep 21, 2020 |access-date=Mar 5, 2025 |work=Advocate Magazine}}</ref><!-- The exact date is a placeholder, since the article does not list the exact day in September it was published --><ref>https://ir.law.fsu.edu/cgi/viewcontent.cgi?article=1454&context=lr</ref><ref>Brunet, Edward, Arbitration and Constitutional Rights (June 24, 1992). North Carolina Law Review, Vol. 71, pp. 81-120, 1992, Available at SSRN: https://ssrn.com/abstract=2284464</ref> | |||
The 7th amendment,<ref>https://constitution.congress.gov/constitution/amendment-7/</ref> also known as the right to a trial by jury, is bypassed via forced arbitration. Additionally, the 6th amendment,<ref>https://constitution.congress.gov/constitution/amendment-6/</ref> also known as the right to a speedy trial, is also bypassed by arbitration since arbitrated cases can take excessively longer than traditional public trials,<ref>https://adrtimes.com/how-long-does-arbitration-take/</ref> especially when lawsuits that could have been filed under class action, end up being broken up into hundreds of individually arbitrated cases, such as what has happened with ''Bucher Law PLLC Vs. Valve Inc.''<ref>https://www.bucherlawfirm.com/steam-case-explained | |||
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===Inconvenient opt-out procedure <!-- Read this, may integrate here: https://www.nclc.org/study-99-of-consumers-unaware-they-are-subject-to-forced-arbitration/ -->=== | |||
Arbitration is often made inconvenient for users to opt-out of. Instead of giving users the option to do so at sign-up digitally, most businesses will require users to send a handwritten letter within 30 days of their sign-up to opt-out of arbitration. This type of opt-out clause can also be seen in Instagram's Terms of Use:<ref name=":0" /><blockquote>"You can opt out of this provision within 30 days of the date that you agreed to these Terms. To opt out, you must send your name, residence address, username, email address or phone number you use for your Instagram account, and a clear statement that you want to opt out of this arbitration agreement, and you must send them here:" [Address redacted]</blockquote> | Arbitration is often made inconvenient for users to opt-out of. Instead of giving users the option to do so at sign-up digitally, most businesses will require users to send a handwritten letter within 30 days of their sign-up to opt-out of arbitration. This type of opt-out clause can also be seen in Instagram's Terms of Use:<ref name=":0" /><blockquote>"You can opt out of this provision within 30 days of the date that you agreed to these Terms. To opt out, you must send your name, residence address, username, email address or phone number you use for your Instagram account, and a clear statement that you want to opt out of this arbitration agreement, and you must send them here:" [Address redacted]</blockquote> | ||