Myths and Facts about the Arbitration Fairness Act of 2007

H.R. 3010/S.1782 would permit parties to choose arbitration voluntarily, but prohibit corporations from forcing consumers into expensive, secretive, and biased arbitrations.

Myth: H.R. 3010 prohibits arbitration.

Fact: H.R. 3010 encourages voluntary arbitration; it only prohibits corporations from forcing mandatory clauses on consumers without their having a chance to negotiate the terms and often without their knowing about it.

Myth: Most consumers favor binding mandatory arbitration.

Fact: Consumers favor voluntary arbitration and being given the choice to arbitrate. Would an employee with a claim against Halliburton want Halliburton deciding how her claim should be handled? Would a homeowner with a claim against his home contractor want the contractor deciding how his claim should be handled?

Myth: Arbitrators are neutral, unbiased decision-makers.

Fact: Binding arbitration favors corporations because only corporations are repeat users of arbitration companies.

Myth: Arbitration is cheap and more accessible to consumers.

Fact: Arbitration is so expensive that most consumers will not be able to pursue their claim against a corporation because they can?t afford the costs of the arbitrator.

Myth: Arbitrators are like judges; they have to follow the law and publicly state the reasons they made their decision.

Fact: Arbitrators are not bound by any laws. They do not have to follow the law and they don?t have make public or even provide to the consumer any explanation for ruling the way that they did.

Get all the facts!