When companies take advantage of consumers in small ways that would not be worth pursuing in the court of law simply because the cost associated with suing a behemoth corporation would be cost prohibitive, consumer can turn to a class action lawsuit to address their concerns. Most consumers would simply eat their losses when faced with the challenge of taking on a major corporation without a consumer class action to participate in.
Forced arbitration clauses in business service contracts aim to strip consumers of their right to join together as a class action to address their shared grievances. Companies work hard to keep consumers in check and under their control, and that is why so many corporations have incorporated arbitration clauses into their service contracts made with consumers.
Forced Arbitration Is Not Favorable for Consumers
Forced arbitration leaves consumers with few options. If a consumer wants a service, credit card or cable package offered by a company with an arbitration contract, the consumer must forfeit the right to sue and must submit to forced arbitration instead. If the consumer does not agree to the forced arbitration clause of the contract, then there will be no service, credit card, or cable package for the consumer – which istoo bad for the consumer.
By accepting to submit all disputes to arbitration, the consumer is forfeiting his or her ability to sue the company via a class action lawsuit, thus effectively insulating the corporation from ever being sued by the consumers of its goods or services. It seems unfair when all of the major service providers, credit card servicers and cable companies require forced arbitration in exchange for the goods and services that they are offering. Consumers are left stuck between a rock and a hard place.
What Hope Is There For Consumers?
Regulations imposed by regulatory agencies may be the answer consumers need when it comes to getting rid of forced arbitration clauses in exchange for services. For example, according to the Los Angeles Times, the Consumer Financial Protection Bureau is considering imposing a ban on credit card companies and other financial service providers from requiring consumers to submit to forced arbitration. The Federal Communications Commission also has the same ability to place similar restrictions on the cable companies, wireless providers and other telecommunications providers.
When the courts are no help to consumers, there is still the chance that the government itself will be interested in making changes and taking steps to protect those who stimulate the economy. Regulatory agencies have the power to act now to change what corporations are doing to consumers, while government representatives have the power to offer and approve new legislation that places limits on what corporations can subject consumers to, but getting legislation approved and implemented takes time.
Contact A New York Consumer Class Action Lawyer
If you, as a consumer have been taken advantage of by a large corporation, there may be a way to address your losses, and the losses of others, through a class action lawsuit. Contact a consumer class action lawyer at the Bromberg Law Office, P.C. today to schedule an appointment.