Lost in the Fine Print

I recently attended a screening of Alliance for Justice’s short film “Lost in the Fine Print” about the growing threat of forced arbitration. Forced arbitration is a part of many contracts for services, products and even jobs. All that gobbledygook that you scroll past to check the box “Yes, I accept the Terms & Conditions”, aka TL;DR contracts. It says that if you ever have a problem with the company, it must be decided through arbitration. A private arbitrator, hired by the company, decides the dispute based on rules often drafted by industry insiders. I had learned about forced arbitration and contracts of adhesion in my first year of law school, but I never really gave it much thought. It seemed like such a ludicrous thing to actually exist. Sure, companies could require arbitration to settle disputes, but eventually, you could get your day in court, couldn’t you? It’s just too absurd to think otherwise. But there is no appeal. Once an arbitrator hands down his decision, that’s it, game over.

U.S. Congressman Hank Johnson describes forced arbitration clauses as establishing a “for-profit system of justice”, but with 94% of arbitrators ruling in favor of the company that hired them, a for-profit system of judgement might be a more accurate description. Within these contracts, companies write their own exit ramp from the public justice system. Essentially, companies opt out of complying with federal and state laws, and by burying their intentions in the fine print, dupe us into agreeing to it. These contracts exempt companies from complying with anti-discrimination, public health, and consumer protection laws. And so far, the courts, our courts, haven’t done anything to stop it.

The power of these clauses it that they are so hidden from public view. Common sense screams in protest to this theft of our rights, but only once you know about it. So if you don’t know, now you know.