A U.S. House of Representatives Financial Services subcommittee recently held a hearing on ways to protect investors. One of the bills under consideration would ban the use of forcing everyday investors into arbitration and affirmatively protect their right to band together as a class action to vindicate their rights.
The impact of forcing everyday investors into arbitration dominated the hearing. In particular, Representatives Alexandria Ocasio-Cortez and Katie Porter explain very clearly the importance of protecting everyday investors right to go to court.
Take a look!
.@AOC: If you’re a company and you tuck [a forced arbitration] clause into virtually anything you can make an employee or consumer sign, you can essentially absolve yourself from almost any form of corporate misconduct, is that correct?
Public Citizen's @ragregg: That’s correct. pic.twitter.com/3iC9bXMFXX
— Public Citizen (@Public_Citizen) April 3, 2019
This is a joy to watch. @RepKatiePorter and Public Citizen’s @ragregg just backed this US Chamber of Commerce rep into a corner on forced arbitration.
Here's what the Chamber of Commerce rep doesn't (or refuses to) understand: Arbitrators are not required to follow the law. pic.twitter.com/x70E7fotti
— Public Citizen (@Public_Citizen) April 4, 2019