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Forced Arbitration: Is this the End of Class Action?

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Synopsis

For decades, Americans who have been wronged by corporations and large companies could bring a class-action lawsuit, pooling their resources to alleviate the cost of suing. The class-action lawsuit made it possible for the “little guys” to take on big conglomerates. But more and more corporations are adding arbitration clauses into terms of service agreements, essentially forcing a consumer to waive the right to sue in court or bring a class-action. The arbitration clauses essentially force each individual to appear before an arbitrator or arbitration panel with a price tag that can sometimes far outweigh the cost of court. For years, the practice of forced arbitration was prohibited by law in many states. But in 2011 the Supreme Court ruled in AT&T Mobility v. Concepcion that all state laws prohibiting forced arbitration clauses are preempted by the 1925 Federal Arbitration Act. That led a host of corporations to add the clauses to terms of service and other contractual agreements. For the consumer with