LEGAL SYSTEM »» TORT »» MANDATORY ARBITRATION »» Feb 20, 2023

Mandatory arbitration is a private-sector alternative to the public court system in which grievances are decided by a private panel instead of a jury. Originally, arbitration was used to resolve business-to-business disputes. But in the last 20 years, it has become the method of choice for businesses to resolve disputes with customers. Businesses in virtually every industry have embraced arbitration as faster, cheaper and more efficient than litigation. It is imposed on employees and customers as a routine and often unnoticed condition of doing business. Without realizing it, many consumers, employees, stockholders and patients sign mandatory arbitration clauses in credit, telephone, car and health insurance contracts, bank loans, rental leases, agreements for babysitting, nursing homes, summer camps, house repairs and more. Critics claim arbitration lacks the legal safeguards of our court system and warn that company panels can be tainted with conflicts of interest that might skew the case’s outcome. Critics claim many arbitration panels, compensated by companies, are biased and often decide in favor of companies which they consider their clients. In addition, consumers may still need to hire an attorney to represent their interests when facing mandatory arbitration. Industry supports claim arbitration eliminates attorney costs thereby keeping costs low for all consumers. Opponents say arbitration, in effect, privatizes our justice system and results in lower settlements than individuals would receive from a jury trial. They also say arbitration protects corporations from large jury verdicts, including class action lawsuits, to the detriment of consumers and employees. Proposed Legislation: Reintroduction of H.R.963 - FAIR Act (117th Congress 2021-2022) Sponsor: Rep. Henry C. “Hank” Johnson (GA) I oppose reforming current mandatory arbitration policy and wish to donate resources to the campaign committee of Speaker Kevin McCarthy (CA). I support prohibiting a predispute arbitration agreement from being valid or enforceable if it requires arbitration of an employment, consumer, antitrust or civil rights dispute, and wish to donate resources to the campaign committee of Rep. Henry C. “Hank” Johnson (GA) and/or to an advocate group currently working with this issue.

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I support prohibiting a predispute arbitration agreement from being valid or enforceable if it requires arbitration of an employment, consumer, antitrust or civil rights dispute, and wish to donate resources to the campaign committee of Rep. Henry C. “Hank” Johnson (GA) and/or to an advocate group currently working with this issue.

Trustee Candidates

Representative If elected as a trustee, the campaign committee of Rep. Henry C. “Hank” Johnson (GA) will be unconditionally awarded the funds pledged to this issue along with a letter requesting him to favorably consider either reintroducing H.R.963 - FAIR Act (117th Congress 2021-2022), or a similar version thereof. National Association of Consumer Advocates If elected as a trustee, National Association of Consumer Advocates will be awarded the funds pledged to this issue along with a letter requesting these funds be used to advocate for allowing consumers, employees, patients and others a choice between the use of mandatory arbitration and traditional court procedures when resolving business disputes. About: The National Association of Consumer Advocates (NACA) is a nonprofit association of more than 1,500 attorneys and consumer advocates committed to representing consumers’ interests. Our members are private and public sector attorneys, legal services attorneys, law professors, and law students whose primary focus is the protection and representation of consumers. They have represented hundreds of thousands of consumers victimized by fraudulent, abusive, and predatory business practices. As a national organization fully committed to promoting justice for consumers, NACA’s members and their clients are actively engaged in promoting a fair and open marketplace that forcefully protects the rights of consumers, particularly those of modest means.

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