The Hidden Truth: Arbitration Clauses Blocking Class Actions

Serving nearby areas by Palm Beach and West Palm Beach, Florida

Arbitration Clauses Preventing Class ActionsIn that boilerplate contract you sign for your credit card, your cell phone, and just about every other consumer or employment contract, there is an arbitration clause that not only takes away your individual day in court, it prevents class actions against large corporations.

Class actions allow individuals who are wronged by large companies to ban together in the court system. Together in a class action, all those individuals have the power to fight a large company they would not have the power to fight on their own.

Examples include AT&T customers who were charged excessive fees, some over $600 or Taco Bell employees who were denied promotions. Alone, these people do not have the resources to fight a big corporation. But arbitration clauses in their contracts are preventing them from pooling their resources to fight the giant companies together.

A Wall Street-led coalition of corporations made the move to block class actions in two Supreme Court cases in 2011 and 2013. The cases went unnoticed by the majority of American consumers, but they served to put a seal of approval on the ban of class actions by arbitration clauses in contracts.

In a recent New York Times study of arbitration clauses, it found that in 2014, 134 out of 162 class-action bans were upheld in court cases.

At the Romano Law Group, we are dedicated to helping victims fight for their rights. Please call 561-533-6700 today for your free legal consultation. We serve clients throughout Palm Beach and West Palm Beach, Florida.