Mandatory binding arbitration, or “forced arbitration,” is ubiquitous in many industries, according to a study released today by Public Citizen. Seventy-five percent of companies in eight industries use forced arbitration, the organization found in a study released a day before a key congressional subcommittee holds a hearing on whether mandatory binding arbitration is fair or voluntary.
"Even though forced arbitration has been exposed as grossly unfair to consumers, the practice remains ubiquitous in many industries,” said David Arkush, director of Public Citizen’s Congress Watch division. “This means that millions of Americans have been stripped of their right to hold corporations accountable in court."
In other forced arbitration news, the Fair Arbitration Now Coalition sent out letters to the American Arbitration Association and JAMS, calling on them to stop taking on consumer, employment, and franchise arbitrations that arise out of pre-dispute mandatory arbitration provisions.
Tomorrow, the House Judiciary Subcommittee on Commercial & Administrative Law will be holding a hearing, "Mandatory Binding Arbitration: Is it Fair and Voluntary?" at 1:00 PM. For those of you in DC who are interested in attending, the hearing is in 2141 Rayburn. For our fans across the country, the hearing will also be available via webcast.