Forced arbitration pushes consumer claims out of court and into a secretive, rigged system where the corporation gets to pick who decides the case and which rules apply. Studies show companies win in arbitration 93 percent of the time –
I suppose that is what the editorial meant when it called the practice “business-friendly.” [BOLD added]
Perhaps worse, forced arbitration lets corporations keep misconduct out of public view and escape accountability. Case in point: Wells Fargo.
Customers have been trying to sue Wells Fargo over these fake accounts since at least 2013. But the bank used “ripoff clauses” in customers’ legitimate account contracts to block them from suing over fake accounts opened in their name – and then continued defrauding its customers for another three years.
If consumers had been able to sue individually or join a class action, this massive fraud could have been exposed long ago. And even now, Wells Fargo has said it will continue to block consumers from taking them to court.