Are mandatory arbitration agreements the new normal?

ShroudedScribe
2024-09-01T01:18:11Z

For clarity, a mandatory arbitration agreement is when a consumer or customer must "agree to have their case reviewed by a third party—called an arbitrator—and to be bound by the arbitrator's decision." The intent is that you waive your right to sue (in a regular court of law) the party you're entering this agreement with. But these agreements can, in some cases, be ruled as invalid by a court. The examples I've seen apply to the US, but I'd be interested in examples from other countries.

I'm sure I'm not the only one who's been noticing how out of hand it's becoming to see these statements plastered in Terms of Service and several other locations.

The most newsworthy example recently was Disney claiming that a statement like this in their Disney+ ToS also applied to a wrongful death case on one of their properties. As the linked article says, they backpedaled on this, but it's still disgusting and disturbing they even tried it in the first place.

The most recent example I've seen is this post on Mastodon where it was included on the packaging of a supplement.

I can't help but wonder if this is just a way to deter people from seeking litigation in the first place, especially if they aren't wealthy enough to hire a legal team that could poke holes in the legitimacy of their mandatory arbitration agreement.

I'm sure there's a nearly endless supply of examples of this, especially in software service agreements. But is there anything that can be done about it? Or is this just one more way corporations get to have more power than people that won't ever change?

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