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Propose an Amendment to the Federal Arbitration Act to Eliminate Class Action Waivers.

Created by E.S. on April 23, 2014

The Federal Arbitration Act lets corporations require resolution of customer disputes in binding arbitration, instead of in court. Corporations can require each customer to arbitrate her claim separately, instead of through a class action (a "class waiver"). Class waivers make vital consumer claims virtually impossible to press, as the cost of waging a successful arbitration often exceeds the damages to an individual consumer, even if combined damages for all consumers were very large.

The Supreme Court upheld class waivers in consumer contracts, despite the impossibility of consumers recovering for the corporations' misdeeds, in AT&T Mobility v. Concepcion and American Express v. Italian Colors Restaurant. The only way to fix this injustice is to amend the Act to eliminate class waivers.

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