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Prohibit contracts from forcing binding arbitration or preventing class action by consumers as part of terms of use.

Created by J.E. on November 03, 2011

An increasing number of contracts and End User License Agreements now include provisions where the user is prohibited from bringing a class action suit against or are required to use binding arbitration with the corporations who make products and services. This is a strong pro-corporate bias that prevents individuals from using the court system to handle grievances because corporations have enough resources to win any court battle against individuals.

The result is that individuals lose access to the judicial system and corporations are immune from legal repercussions from wronging customers. The Obama administration should pursue legislation to prohibit these clauses from being included in contracts.

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