Bipartisan legislation would ban mandatory arbitration clauses in consumer contracts, restoring the right to file class action lawsuits against corporations for defective products and deceptive practices.
What Would Change
- Forced arbitration clauses banned in consumer contracts
- Class action lawsuits restored for product liability
- Employees can sue for workplace violations
- Affects credit cards, cell phones, software licenses
Currently, 75% of Americans are bound by mandatory arbitration clauses they never knowingly agreed to. Consumer groups argue these clauses allow companies to avoid accountability by preventing class actions.
