Forced arbitration: Difference between revisions

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===Conflict of interest===

Companies track performance of arbitrators over time, and as such, are able to pick arbitrators that lean towards the industry rather than the consumer.<ref>{{Cite web |last=Seru |first=Amit |date=Feb 2023 |title=Tipping the scales: Balancing consumer arbitration cases. |url=https://siepr.stanford.edu/publications/policy-brief/tipping-scales-balancing-consumer-arbitration-cases |url-status=live |access-date=4 May 2025 |website=Stanford Institute for Economic Policy Research}}</ref> While both the consumer and company theoretically have some control over the selection of the arbitrator, the company generally has an information advantage in the selection process. Furthermore, individual arbitrators have a long-term financial incentive to bias their rulings in favor of corporations, as the corporation is much more likely to become a "repeat customer" than the consumer. In extreme cases, entire arbitration firms may have a material conflict of interest.<ref>{{Cite web |date=20 Jul 2009 |title=NAF Announcement — Out of Consumer Arbitration |url=~~https~~://indisputably.org/2009/07/naf-announcement-out-of-consumer-arbitration/ |url-status=live |access-date=4 May 2025 |website=indisputably.org}}</ref>

Companies track performance of arbitrators over time, and as such, are able to pick arbitrators that lean towards the industry rather than the consumer.<ref>{{Cite web |last=Seru |first=Amit |date=Feb 2023 |title=Tipping the scales: Balancing consumer arbitration cases. |url=https://siepr.stanford.edu/publications/policy-brief/tipping-scales-balancing-consumer-arbitration-cases |url-status=live |access-date=4 May 2025 |website=Stanford Institute for Economic Policy Research}}</ref> While both the consumer and company theoretically have some control over the selection of the arbitrator, the company generally has an information advantage in the selection process. Furthermore, individual arbitrators have a long-term financial incentive to bias their rulings in favor of corporations, as the corporation is much more likely to become a "repeat customer" than the consumer. In extreme cases, entire arbitration firms may have a material conflict of interest.<ref>{{Cite web |date=20 Jul 2009 |title=NAF Announcement — Out of Consumer Arbitration |url=http://indisputably.org/2009/07/naf-announcement-out-of-consumer-arbitration/ |url-status=live |access-date=4 May 2025 |website=indisputably.org}}</ref>

===Bricking until agreement===

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 ===Conflict of interest===
-Companies track performance of arbitrators over time, and as such, are able to pick arbitrators that lean towards the industry rather than the consumer.<ref>{{Cite web |last=Seru |first=Amit |date=Feb 2023 |title=Tipping the scales: Balancing consumer arbitration cases. |url=https://siepr.stanford.edu/publications/policy-brief/tipping-scales-balancing-consumer-arbitration-cases |url-status=live |access-date=4 May 2025 |website=Stanford Institute for Economic Policy Research}}</ref> While both the consumer and company theoretically have some control over the selection of the arbitrator, the company generally has an information advantage in the selection process. Furthermore, individual arbitrators have a long-term financial incentive to bias their rulings in favor of corporations, as the corporation is much more likely to become a "repeat customer" than the consumer. In extreme cases, entire arbitration firms may have a material conflict of interest.<ref>{{Cite web |date=20 Jul 2009 |title=NAF Announcement — Out of Consumer Arbitration |url=https://indisputably.org/2009/07/naf-announcement-out-of-consumer-arbitration/ |url-status=live |access-date=4 May 2025 |website=indisputably.org}}</ref>
+Companies track performance of arbitrators over time, and as such, are able to pick arbitrators that lean towards the industry rather than the consumer.<ref>{{Cite web |last=Seru |first=Amit |date=Feb 2023 |title=Tipping the scales: Balancing consumer arbitration cases. |url=https://siepr.stanford.edu/publications/policy-brief/tipping-scales-balancing-consumer-arbitration-cases |url-status=live |access-date=4 May 2025 |website=Stanford Institute for Economic Policy Research}}</ref> While both the consumer and company theoretically have some control over the selection of the arbitrator, the company generally has an information advantage in the selection process. Furthermore, individual arbitrators have a long-term financial incentive to bias their rulings in favor of corporations, as the corporation is much more likely to become a "repeat customer" than the consumer. In extreme cases, entire arbitration firms may have a material conflict of interest.<ref>{{Cite web |date=20 Jul 2009 |title=NAF Announcement — Out of Consumer Arbitration |url=http://indisputably.org/2009/07/naf-announcement-out-of-consumer-arbitration/ |url-status=live |access-date=4 May 2025 |website=indisputably.org}}</ref>
 ===Bricking until agreement===