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Mandatory Arbitration

Corporations throughout America are increasingly inserting mandatory arbitration clauses in their form consumer, employment and investor agreements that prohibit lawsuits against them. These clauses force customers, workers and shareholders out of court and into arbitration, which is often heavily weighted in the companies’ favor.

With the clauses, usually buried in small print, there’s often no knowledge or choice. For workers, keeping a job is viewed as “agreeing” to the provision. Nearly all credit card, phone, mortgage and computer companies now use them, as do banks, HMOs, car dealers, doctors and insurers. The courts are now deciding whether such clauses can be used to make customers, employees, and shareholders contractually waive all their rights.

What Public Justice Is Doing

Our Mandatory Arbitration Abuse Prevention Project is the acknowledged national leader in the battle against corporate efforts to use arbitration to eliminate court access. We have lawyers working full-time on the project, battling and helping others to battle this pernicious trend. We’ve even written a book on the subject — Consumer Arbitration Agreements — now in its updated, 7th edition.