AFSA Opposes Arbitration Ban Bill
Today, AFSA signed on to a joint letter to the Members of the House of Representatives opposing HR 963, which would ban arbitration in private contracts. Pre-dispute arbitration clauses benefit consumers, small businesses and employees and have been protected in federal law since 1925.
“The only clear beneficiaries of broadly eliminating cost-effective and fair arbitration as a viable way to resolve disputes are class action lawyers, who would directly benefit from increased class action litigation,” the joint trades wrote. “Studies have shown that class action settlements frequently provide, at best, a very low return to class members while class action attorneys take in millions of dollars. Their gain would come at the expense of consumers, small businesses, and employees, many of whom are not even eligible to participate in class action litigation.”
AFSA has emphasized the important role that pre-dispute arbitration plays in our economy and most recently, wrote to Senate Committee on Banking, Housing, and Urban Development Chairman Sherrod Brown (D-OH) and Ranking Member Patrick Toomey (R-PA) on the committee’s hearing.
March 15th, 2022 by Dan Bucherer