A major impediment to consumer vindication of their rights is the widespread use of mandatory arbitration clauses and class action bans in consumer contracts. This section of our website contains materials relating to various approaches to attack such clauses. A model state law limits the use of such clauses while not being preempted by the Federal Arbitration Act. A consumer law treatise, Consumer Arbitration Agreements, provides tactics to challenge arbitration agreements' enforceability. Testimony and comments support federal legislation limiting mandatory arbitration.
Policy Briefs, Reports and Press Releases
- Press Release: NCLC comments to CFPB on proposed arbitration and class action rule, Aug. 22, 2016
- Press Release: Rule to Rein in Illegal Business Practice Gains Key Support from Congress, Aug. 3, 2016
- Press Release: NCLC to testify before the Chicago City Council on harms of forced arbitration by contractors in consumer and employment agreements, June 15, 2016
- Press Release on Forced Arbitration: CFPB Issues Proposed Rules to Restore Consumers' Legal Rights, May 5, 2016
- Letter from NCLC and 38 other advocacy organizations urging the FCC to oppose opt-in customer consent for broadband & other telecom. providers and to prohibit forced arbitration clauses in contracts, Sept. 7, 2016
- Letter opposing Appropriation riders that limit CFPB's arbitration authority, May 10, 2016
- Letter supporting Blumenthal-Franken Telecom-Arb Bill, Apr. 28, 2016
- Letter from 164 advocacy and business groups to the CFPB urging ban of forced arbitration, April 27, 2016
- Coalition Letter to Secretary King urging the U.S. Department of Education to adopt strong rules denying Title IV funding to schools that force students into mandatory arbitration, April 25, 2016
- 47 Groups Call on Department of Education to Halt Federal Funding for Predatory Schools That Deny Students’ Legal Rights, March 4, 2016
- S. 2506 (Leahy), Restoring Statutory Rights Act of 2016. Consumer support letter, Feb. 4th, 2016
- Opposition letter to H.R. 1927, a bill to destroy class actions, Jan. 6, 2016
- NCLC comments to CFPB on proposed arbitration and class action rule, Aug. 22, 2016 Press Release
- Coalition Comments of 41 student, veteran, civil rights, and consumer groups re: the Department of Education's Proposals on Forced Arbitration, Class-Action Bans, and Mandatory Internal Dispute Processes, Aug. 1, 2016
- Group Comments to FCC's request for comment on whether it should ban forced arbitration clauses in internet broadband contracts, May 26, 2016
- NCLC testimony before the Chicago City Council on harms of forced arbitration by contractors in consumer and employment agreements, June 15, 2016.
- NCLC testimony before the New York State Assembly on the harms of forced arbitration clauses, February 10, 2016
- Testimony before the U.S. House Committee on the Judiciary: Recent Developments in the Forced Arbitration Market and the Continued Need for Protective Legislation, September 15, 2009.
- Exhibit I, Exhibit II, Exhibit III, Exhibit IV, Exhibit V
Model State Laws Limiting Arbitration