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Netflix Latest Company to Laugh at Your Legal Rights
Yet Another Company Includes Binding Arbitration Language
by Karl Bode 06:30PM Tuesday Mar 20 2012
AT&T long tried to use fine print to try and ban their customers from suing them via class action, instead forcing users into binding arbitration where corporations win more often than not. Despite the fact that many lower courts repeatedly declared such activity violated user rights and was "unconscionable," the Supreme Court last year ruled in AT&T's favor, opening the flood gates for every corporation to include this language in their TOS. Sony quickly added such a provision, as did video game powerhouse Electronic Arts. Thanks to AT&T, most ISPs and companies now include the language.

Several users have written in to note that Netflix is only just the latest to prohibit customers from suing them in court in their fine print, their latest terms of use update making the shift very clear:
These Terms of Use provide that all disputes between you and Netflix will be resolved by BINDING ARBITRATION. YOU AGREE TO GIVE UP YOUR RIGHT TO GO TO COURT to assert or defend your rights under this contract (except for matters that may be taken to small claims court). Your rights will be determined by a NEUTRAL ARBITRATOR and NOT a judge or jury and your claims cannot be brought as a class action.
Since the arbitration companies are working for the corporation you're filing a complaint against, they're not really "neutral," and in the credit card industry arbitrators file in favor of their employer roughly 95% of the time. As an interesting side note, user drjp81 See Profile notes that Netflix is also trying to impose this language on Canadian users, despite a Canadian Supreme Court ruling and laws in at least three Provinces (Canadians can correct me if I'm wrong) that prohibit such restrictions.

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