Senators Say Binding Arbitration Helps AT&T Dodge Accountability AT&T was a pioneer in using fine print to try and ban their customers from suing them via class action, instead forcing users into binding arbitration where corporations win more often than not. Despite the fact that many lower courts repeatedly declared such activity violated user rights and was "unconscionable," the Supreme Court narrowly ruled in AT&T's favor back in 2011, opening the flood gates for every corporation to do the same thing.

So thanks in large part to AT&T lawyers, most companies now include some variant of this language, restricting your legal rights and forcing you to use a binding arbitration process where the arbitrator more often than not finds in favor of his or her corporate employer (tip: that's not you). This week AT&T took some heat from a handful of Senators claiming that AT&T uses this process to dodge accountability for bad behavior. In a letter sent to AT&T CEO Randall Stephenson (pdf), Senators Al Franken, Richard Blumenthal, Ron Wyden, Patrick Leahy, and Edward Markey argued that the standard AT&T helped establish "strips consumers of the right to band together with other consumers to challenge a provider's widespread wrongdoing." "Forced arbitration provisions in telecommunications contracts erode Americans' ability to seek justice in the courts by forcing them into a privatized system that is inherently biased in favor of providers and which offers virtually no way to challenge a biased outcome," the senators wrote in a letter yesterday to AT&T CEO Randall Stephenson. "Forced arbitration requires consumers to sign away their constitutional right to hold providers accountable in court just to access modern-day essentials like mobile phone, Internet, and pay-TV services." And while class action lawsuits certainly have their own problems, critics of binding arbitration say it's a "solution" that's actually worse than the problem it professes to cure. In this case, the Senators say they are "particularly concerned about AT&T's treatment of customer complaints alleging that the company charged a higher rate for services than initially offered in a deal or promotion." That's a problem that That's a problem that runs rampant in a sector that uses hidden fees to covertly jack up the advertised price post sale. And it's a problem that's not going to get much attention from the current administration, which has made removal of many consumer protections a top priority.







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Most recommended from 13 comments



IowaCowboy

Supermarket Hero

Premium Member

join:2010-10-16

Springfield, MA ARRIS SB6183

Netgear R8000

18 recommendations IowaCowboy Premium Member Arbitration agreements should be banned Arbitration agreements should be banned, especially in nursing home agreements. The nursing home industry is one of the sleaziest industries out there. Several of the facilities that my Grandmother was in during her final days makes Comcast, AT&T and Verizon look like ethical customer friendly companies. A bad picture on your TV or a no service indicator on your cell phone is different than the lethal bed sores that ended up killing my grandma.

GroovyPhoenx

Premium Member

join:2006-05-22

Gloucester, ON 5 recommendations GroovyPhoenx Premium Member Arbitration "maybe" unfair?!?! ROFL! It's always been the case really. Arbitration was invented so that companies could profit from their mistakes and not have to pay out.



To me, unless its signed in blood it should never be "arbitrated" unless BOTH parties agree to the moderator, and then get a TRULY independent arbitrator NOT someone picked by the company, it doesn't take a genius to figure out the company will pick the arbitrators that rule in their favor over someone who would protect the consumer.



And the arbitrator knows who butters his bread so in turn unless they grow a conscious there is no way they will not side with the company period.

Anon00144

@qwest.net 2 recommendations Anon00144 Anon Yup, it happened to me Yup, it happened to me. Canceled service. Everything good with you folks? Do I owe you anymore money? Thank you. Goodbye.



Six months later they tell me that I owe them about $200. I say, check the call record. Can't do that. I try contacting their legal department. Nothing. Arguing for months. No progress.



I do some research and find out this has been a pattern. Hundreds? Thousands? People getting screwed over. The exact same pattern. Yup, this is standard business practices for them.



I contact the state attorney general and state communications board. I move forward to start a class action against them. I contact consumer-friendly lawyers. I have lots of long conversations. Perfect case for class action. Too bad we can't do. Binding Arbitration.



Eventually I get a call from a collection agency. They say that they will settle if I pay 50%. I pay it because, you know.



Anyhoo, I suggest waiting until the unpaid invoice goes to collections and you'll you pay half the amount.