Ban forced arbitration in consumer contracts

Every day, countless consumers find themselves compelled to give up their rights to pursue claims through the courts due to mandatory (pre-dispute) arbitration clauses in various contracts. Whether it's signing up for a new bank account, agreeing to a mobile phone plan, downloading an app, or purchasing concert tickets, these clauses are often buried in the fine print. They effectively rob individuals of their right to seek recourse in a court of law, demanding instead that they resolve disputes through arbitration—a process that heavily favors large corporations.

For business-to-consumer interactions, this imbalance of power leads to unjust outcomes. Consumers, unlike businesses, generally lack the resources and bargaining power to negotiate these terms, leaving them vulnerable to unfair practices. In many cases, forced arbitration results in higher costs for consumers and denies them the opportunity for an impartial hearing.

Research and statistics underscore this grim reality: studies by the Consumer Financial Protection Bureau have highlighted that arbitration is more likely to result in favorable outcomes for businesses. This unfairness persists despite the obvious harm to consumers, evidenced by the numerous reports and studies showcasing the disadvantages of this approach.

We believe it’s time for change. While we understand and respect the necessity of arbitration in business-to-business (B2B) interactions—where parties typically engage on an equal footing with negotiated terms—we strongly urge lawmakers to eliminate compulsory arbitration clauses from consumer contracts.

Our call to action is simple: we need legislation that protects consumer rights in these situations. This can be achieved by banning mandatory arbitration for consumer agreements while maintaining the function of arbitration where it suits B2B contracts.

By signing this petition, you are lending your voice to a crucial cause that affects millions. Let's restore fairness and transparency to consumer transactions and ensure that everyone has an equal chance to seek justice. Your signature can make the difference.