AAJ Applauds Bipartisan Senate Hearing Restore Americans’ Rights Against Forced Arbitration

Washington, DC — Following a hearing held by the U.S. Senate Judiciary Committee today, the American Association for Justice (AAJ) applauded the growing bipartisan momentum to protect Americans’ 7th Amendment rights and end the insidious practice of forced arbitration.
 
A rigged system that deprives individuals of any choice when trying to hold harmful companies accountable, forced arbitration gives corporations the ability to block consumers, workers, and patients from bringing their case to a jury. Today, senators from both sides of the aisle heard from leading experts as well as those who’ve experienced the devastating impact of forced arbitration firsthand.
 
"Every day, powerful corporations rob Americans of their freedom by forcing them into a corrupt and biased system," said American Association for Justice (AAJ) CEO Linda Lipsen. "Americans can decide for themselves if and how they want to pursue justice – those choices shouldn’t be made for them by corporate lawyers. I applaud Chair Durbin, Ranking Member Graham, and the Senate Judiciary Committee for holding today’s bipartisan hearing to expose forced arbitration and the harm it causes."
 
Joanne Grace, a registered nurse from Ohio, testified about her experience with forced arbitration and illegal age discrimination, which impacts nearly two out of every three American workers aged 45 and older.
 
"My former employer is using forced arbitration to steal my rights, my voice, and even my dignity," said Grace. "Forced arbitration is a means not to change anything, but to hide everything."
 
Gretchen Carlson, journalist and co-founder of Lift Our Voices and Myriam Gilles, Professor of Law at Benjamin N. Cardozo, were also among the witnesses.
 
"I think this boils down to the fact that people don’t have the right to decide for themselves what’s best for them. When you have forced arbitration, the decision has already been made for you. The operative word is ‘forced’. If it’s so great, why is it forced upon you?"  said Carlson. "Every study shows that the majority of Americans – when they understand what arbitration is – disagree with it because they want to be able to make the choice for themselves. Whether or not they choose to seek accountability, they at least want to have that choice."
 
"Forced arbitration does not accomplish what its proponents claim: it doesn’t channel cases into an alternative system that’s cheaper or faster. Instead, when subject to forced arbitration, consumer and worker claims simply vanish," said Gilles. "And along with those disappearing cases, we sacrifice the rights of all Americans to make decisions for themselves about the path to accountability."
 
Even though a person has a better chance of being struck by lightning than winning their case through this process, corporations are dramatically increasing their use of forced arbitration. But public opposition continues to swell: last fall, more than 100 consumer protection, civil rights and labor organizations filed a comment asking the Consumer Financial Protection Bureau (CFPB) to create a rule ending the ability of big banks and other financial services corporations to force their customers into arbitration. They were joined by over 17,000 citizen advocates by petition.
 
There is bipartisan agreement in Congress on the need to take action. Two years ago, Congress overwhelmingly voted to pass the Ending Forced Arbitration for Sexual Harassment and Sexual Assault Act, restoring sexual assault and harassment survivors’ rights. But everywhere else, from rideshare apps, to nursing home contracts, to credit card paperwork, to workplace discrimination, individuals are still forced into arbitration by hidden language they had no idea existed in the fine print of employment agreements or the terms and conditions for many products and services.

CONTACT Carly Moore Sfregola Email: Carly.Sfregola@justice.org Phone: 202.684.9609