If you have a beef with eBay, you'll go before a private arbitrator instead of a judge in court. A growing number of e-world businesses are joining the ranks of banks and credit card companies that quietly force customers into arbitration agreements. Customers, simply by making a purchase, often automatically give up their right to sue. Unless, of course, they challenge the agreement itself. At times, consumers only realize what they've lost when there's a problem, and they can't file suit.
Businesses defend arbitration as a cheap, convenient alternative to court.
And many insist that their customers favor arbitration, even though it forces them to give up the right to a jury trial and generally to appeal a loss. But if arbitration is such a win-win proposition, companies should be eager to sell the idea in bold, understandable language. Gateway has changed its process. Chevy Chase Bank announced its arbitration policy to credit card holders in 1996 in minuscule print included with a billing statement. Three consumers have sued challenging the policy, and the case is now on appeal.