The Next Attack on Consumers' Rights While consumers continue to struggle to safeguard their civil rights in the legislature and the courthouse, corporate America has found a new way to attack these rights by slipping mandatory arbitration provisions in consumer, health care, insurance and employment contracts as a condition to either obtaining consumer services or employment.
Examples appear to be happening nationwide.
In some states, car dealers are requiring consumers to sign mandatory arbitration clauses in order to purchase an automobile. Health care providers and physicians are requiring patients to sign mandatory arbitration clauses before providing health care treatment. Credit card companies are requiring mandatory arbitration in any disputes, and some earnest money contracts, for the purchase of real estate, include language requiring mandatory arbitration in the event problems from the real estate purchase ensue. Unions are bargaining away third party rights in exchange for lower health care premiums. Consumers, however, are recognizing that these mandatory arbitration provisions completely circumvent the civil justice system and leave consumers with inadequate protections and little recourse.