Re:U.S. Consumer Bureau Loses Fight to Allow More Class-Acti...
by pmyteh on Wednesday October 25, 2017 @11:43AM
(#15551051)
Per the article: "During the two-year period studied, only 78 arbitration claims resulted in judgments in favor of consumers, who got $400,000 in total relief."
It's not clear what the denominator on that sum is, though it is also stated that the rate of customers taking up arbitration was very low
Re:U.S. Consumer Bureau Loses Fight to Allow More Class-Acti...
by Larrikin on Wednesday October 25, 2017 @11:42AM
(#15551042)
The normal system is that these civil disputes are done in a court of law. Justify the change.
Re:U.S. Consumer Bureau Loses Fight to Allow More Class-Acti...
by rhizome on Wednesday October 25, 2017 @01:33PM
(#15552144)
The siren call of tort-reform by any other name...
Re:U.S. Consumer Bureau Loses Fight to Allow More Class-Acti...
by emodendroket on Wednesday October 25, 2017 @02:35PM
(#15552825)
You've found the data, but it's not surprising at all given the circumstances -- the arbiters are chosen by the company, so they know where their bread is buttered. What's more, class-action suits are just impossible under forced arbitration and who's going to go through a long process that will cost thousands because they got ripped off for a hundred bucks?
Re:U.S. Consumer Bureau Loses Fight to Allow More Class-Acti...
by lostdog on Wednesday October 25, 2017 @03:28PM
(#15553312)
Arbitration is also secret, so it's very difficult to gather data about its results.
Re:U.S. Consumer Bureau Loses Fight to Allow More Class-Acti...
by ensignavenger on Wednesday October 25, 2017 @12:59PM
(#15551806)
Did the study compare those outcomes to outcomes when taken to trial?
EDIT:
It looks like the bottom of the article explains that the US Consumer Bureau studied arbitration and found it anti-consumer:
As arbitration clauses appeared in tens of millions of contracts, the consumer agency was specifically mandated to study arbitration under the Dodd-Frank financial law in 2010. That effort culminated in a 728-page report, released in March 2015, that challenged longstanding assumptions about arbitration.
The agency found that once blocked from suing, few people went to arbitration at all. And the results for those who did were dismal. During the two-year period studied, only 78 arbitration claims resulted in judgments in favor of consumers, who got $400,000 in total relief.