California consumers are fast losing their right to take businesses to court when they believe they’ve been wronged. Our three-part series, Justice For Sale, looks at the extraordinary growth in mandatory arbitration clauses in contracts for everything from jobs to cell phones to medical care. Part One examines the claim that private arbitration is heavily biased against consumers. Part Two describes how California arbitration providers have ignored a state transparency law for a decade. Part Three details a game-changing US Supreme Court case from 2011 that has essentially rung a death knell for consumer class action lawsuits in California.
In the wake of a big 2011 Supreme Court decision that began in San Diego, “nearly all” arbitration clauses bar consumers from bringing class action lawsuits against their lenders, according to a new study.