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AT&T Wins Supreme Court Arbitration Case
Your Rights to Class Actions Now Eliminated by Mouse Print

For years now, companies like AT&T have tried to bury fine print in user contracts stating that they cannot participate in class action lawsuits, but must instead participate in binding arbitration -- a process overseen by companies hired by AT&T where consumers lose more often than not. Judges time, time, and time again have told ISPs this isn't legal, and an appeals court in California had ruled that eroding user legal options with fine print as "unconscionable." The case was finally heard by The Supreme Court this week, who ruled 5-4 across party lines in AT&T's favor:

quote:
The Supreme Court gave corporations a major win Wednesday, ruling in a 5-4 decision that companies can block their disgruntled customers from joining together in a class-action lawsuit. The ruling arose from a California lawsuit involving cellphones, but it will have a nationwide impact. . . in Wednesday's decision, the high court said that under the Federal Arbitration Act companies can force these disgruntled customers to arbitrate their complaints individually, not as part of a group. Consumer-rights advocates said this rule would spell the end for small claims involving products or services.
As the Wall Street Journal law blog notes, the case is a big deal as it could not only result in the death of class actions as an option for consumers, but it also impacts corporate employees and shareholders -- as corporations will now place the legal-right eroding language in virtually all contracts and "transactional relationships." While many justifiably lament the skewed attorney/client payouts associated with class actions, such suits have created substantive consumer benefits, such as carriers being forced to pro-rate ETFs or be more transparent about network management practices.

The full opinion is here (pdf), for those who are interested.

Most recommended from 143 comments



coldmoon
Premium Member
join:2002-02-04
Fulton, NY

2 recommendations

coldmoon

Premium Member

This might be an opportunity

Now that the issue has been settled, there might be an opening for a a disruptive company to come in and compete on the basis of NOT forcing arbitration. I will admit at first blush this might not happen, but it could if enough people are ready to protest against this type of consumer protection erosion.

The rulling said that the companies COULD force arbitration but said nothing about companies all having to USE or FORCE arbitration approaches...

Something to think about at least...
JMHO
Mike