Heres how to quickly find what rights youre giving up
Most of us probably don't even realize it, but when we sign up for stuff like Netflix, Walmart, Spotify, or even Disney+, we're alsogiving up our right to sue these companies if something goes wrong. It's right there in those Terms of Service agreements or at least buried there in tiny print.
This win-at-all-costs policy has its roots with thatconsumer who famously sued McDonalds over burns from a scalding hot cup of coffee. And as more companies got sued, more started covering their legal behinds, and arbitration agreements have quietly reshaped the way justice is pursued in the U.S., making it much harder for individuals to take on big companies in court.
Even its name is threatening
Its called forced arbitration Walmart calls it mandatory arbitration and the law offices who do this for a living like to be referred to as Alternative Dispute Resolution (ADR) companies. But the plain English version is that its basically like settling things outside of court and these companies leverage ADR to try and shield themselves from various legal disputes.
Arbitration can be an efficient and fair way to resolve a dispute particularly if both parties have elected to use it, attorney John M. Parese, told ConsumerAffairs.
However, Parese contends that these forced arbitrations often chalk up a win for the companies but a loss for the consumer because they deprive individuals or corporate claimants of the right to pursue recovery from the court system.
And guess whos on these companies side? The U.S. Supreme Court. See for yourself
CVS, Kohls, LG theyre all doing it, now
We wish we could report that there were only a handful of companies using forced arbitration, but we cant. There are an estimated 826 million such clauses in force affecting consumers more than double the U.S. population.
There are just as many small companies like Free Prints Photo Tiles playing this game as there are large ones like CVS, Kohls, and UHaul. And it happens to ConsumerAffairs reviewers who say they were forced into arbitration by reputable companies like Discover, which the consumer found out used its own in-house arbitrators,and who was strong-armed into arbitration byLG overa warranty issue with its washing machines.
Mickey Mouse did what?
A recent lawsuit against Disney has broughtforced arbitration to light when aguy named Jeffrey Piccolo's wife died after experiencing an allergic reaction at a Disney World restaurant. He tried to sue Disney, but they said, "Nope, you can't sue us. You agreed to arbitration. Case closed.
Disney was leaning on language in its Disney+ and ESPN+ subscriber agreements terms and conditions language that covers everything short of you growing a hangnail while hanging out with Goofy at Disney World, or you throwing a can of beer at your TV if Lee Corso picks Alabama over Ohio State on ESPN GameDay.
The dam protecting companies from consumer lawsuits may have started to crack: In an interesting turn of events, Disney has decided its backing off of its stance in the Piccolo case.
"We believe this situation warrants a sensitive approach to expedite a resolution for the family who have experienced such a painful loss," Disney's Josh D'Amaro told the BBC in a statement.
"As such, we've decided to waive our right to arbitration and have the matter proceed in court.
'In good faith'
The companies who mandate forced arbitration will tell you that it is usually faster and cheaper than going to court and they make a good point. But, its probably not a win-win since they choose the firm that will arbitrate the disagreement, and those firms may tilt things in favor of their client just to keep them happy.
And don't count on these companies to say sorry, but rather sorry, not sorry. When you sign their terms and conditions, youre waiving your right to sue them if something goes wrong.
Instead, if your complaint goes nowhere in what some companies couch as in good faith, you are forced to arbitrate the case IF you want to continue your fight often using an alternative dispute resolution company of their choosing, not yours.
Is there anything you can do?
As you saw in the video, the Supreme Court has consistently upheld the validity of these arbitration clauses, making it increasingly difficult for consumers to challenge big companies in court. But, if the dam that Disney put a crack instarts to grow more cracks, you the consumer may finally have a way to get out of these jams.
In the meantime, though, your options are limited. The most important thing you can do is read all agreements carefully.
When youre looking at one online, do a ctrl-F and search for arbitration to see if its in the agreements language. If it is, either accept it or ask that it be removed. If you're dealing with a contract that's negotiable, ask for the arbitration clause to be removed. You may have more leverage if you're a long-time customer or the company wants your business.
The other option is to search the contract to see if it includes an option to opt-out of the arbitration clause within a specific timeframe. This typically involves sending a written notice to the company. Make sure to follow the instructions in the contract and keep proof of your opt-out notice.
Of course, there is another option that will work in your favor. If whatever youre about to buy comes from a company that forces arbitration if something goes wrong, you can always find another company who plays nice and doesnt play that game.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-08-30 12:01:25
