A coalition of national consumer and civil rights groups have joined forces to stop binding mandatory arbitration because:
- Forced arbitration generally binds the consumer—not the company. The way most mandatory binding arbitration clauses are written, the seller or employer retains its rights to take any complaint to court while the consumer can only initiate arbitration.
- Forced arbitration severely limits consumer and employee options for resolving a dispute. Before any problem arises, you lock yourself into only one option—binding arbitration—for resolving all future disputes or problems. The contract typically also names the arbitration company that must be used.
- Arbitration does not follow clear, well-established, consistent rules and procedures such as those required for litigation in the court system. The company or employer generally picks the arbitration company—"the judge, " which is not how the legal system works.
- Forced arbitration frequently costs more than taking a case to court.
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