Group Letter to U.S. Home Supporting FAIR Act

February 28, 2019

The Honorable Jerrold Nadler, Chairman The Honorable Doug Collins, Ranking Member U.S. House Committee in the Judiciary Washington, DC 20515

RE: Coalition Letter Supporting Introduction for the Forced Arbitration Injustice Repeal (FAIR) Act

Dear Chairman Nadler and Ranking Member Collins:

We, the organizations that are undersigned highly support the Forced Arbitration Injustice Repeal (FAIR) Act. This crucial legislation would avoid corporations from forcing employees, customers, and small enterprises to eliminate disputes in personal, company-controlled arbitration systems, even if that business has involved with unlawful misconduct. The balance would especially protect instances involving consumer, civil legal rights, work, or antitrust violations, and it also would make sure federal and state legislation enacted to guard protection under the law in those situations are precisely enforced.

Forced Arbitration Disadvantages Workers, People, and Small Enterprises

Forced arbitration clauses are often concealed into the print that is fine of” agreements. These clauses deprive folks of their straight to seek justice in court before an impartial judge or jury. They truly are ubiquitous in agreements bank that is governing, figuratively speaking, mobile phones, work, small company merchant reports, as well as nursing house admissions.

Corporations that place forced arbitration clauses within their contracts that are standard customers, non-union workers, and small organizations shield themselves from accountability for unlawful methods as well as other wrongdoing. The agreements typically designate:

- The arbitration provider, who usually depend on the business for repeat company therefore can be biased within the company’s favor;

- The arbitration guidelines, which offer none for the appropriate safeguards that protect people who make use of the courts, including their ability to acquire key proof required to show case that is one’s

- hawaii when the arbitration is always to happen, which can be constantly in the company’s convenience, maybe not the harmed person that may need to travel far to obtain here, and

- The repayment terms, that might add filing that is exorbitant, in addition to constant costs for procedures such as for example motions and penned findings, and “loser pays” rules that are prohibitive for some.

The procedures are key and last with few legal rights to charm. Research reports have shown that those forced into arbitration are less likely to want to win, get smaller prizes, and therefore are otherwise severely disadvantaged. In line with the Economic Policy Institute, “Consumers obtain relief regarding their claims in mere 9 per cent of disputes. Having said that, whenever businesses make a claim or counterclaims, arbitrators grant them relief 93 per cent of this time—meaning the consumer is ordered by them to cover.”

Forced Arbitration Clauses Are Every-where and generally are Perhaps Not Voluntary

Since arbitration clauses usually are contained in non-negotiable agreements, the customer, worker, or small company is offered an appropriate fiction which they already have a “choice” whenever signing away their liberties whenever in reality refusing to signal means forgoing the products, solutions, or work. Because of this, based on the Economic Policy Institute, 60.1 million employees, over fifty percent of non-union, private-sector workers, have actually finalized away their straight to visit court if harmed by their boss. In customer agreements, a lot of credit cards, prepaid cards, storefront pay day loans, mobile phone businesses, and personal education loan agreements, along side a large portion of banking institutions, incorporate arbitration clauses in non-negotiable agreements. Numerous small enterprises may also be obligated to consent to arbitrate disputes with bigger businesses, even if those businesses steal cash, price-fix, and otherwise violate antitrust laws and regulations that harm the business.

Forced Arbitration Clauses Enable Corporations to Evade Accountability for Prohibited Misconduct

Forced arbitration clauses enable banks and loan providers to cheat clients without any accountability. They enable businesses to cover systemic harassment and discrimination, including intimate harassment. This is exactly why tens and thousands of Bing employees across the globe strolled from the task in belated 2018 to protest, among other activities, Google’s usage of forced arbitration clauses to full cover up mistreatment of employees whom alleged harassment and discrimination against high-level executives. Additionally they prevent smaller businesses from enforcing their liberties against organizations involved with unlawful conspiracies that are antitrust permitting crooks to help keep ill-gotten gains and making small enterprises with small or nothing.

In amount, forcing consumers, employees, and small enterprises into arbitration has played a significant part in hiding systemic wrongdoing and permitting business wrongdoers to evade accountability for bad functions.

Congress Should Act