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this post was submitted on 15 Aug 2024
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Arbitration clauses must be made illegal
Or at least reasonable.
It's perfectly reasonable for, say, a tattoo artist not to be liable for the medical bills, if the ink causes a hitherto unknown allergy to kick in.
It's not reasonable to argue that a streaming service agreement covers liability for being cut in half by a train.
There has to be a reasonable understanding of the underlying risks that are covered. Some things are just inherently risky, and if the buyer knows and understands that, she can agree on taking that risk. Otherwise, no doctor would ever touch any patient ever again.
Arbitration is never the right answer. Fix the judicial system, don’t privatize it.
I think we should be allowed to opt in to arbitration from within the public judicial system, once charges have already been brought forward. Then people will only agree to it when it's legit just saving time/money, and won't change the likely ruling.
A public system designed for everyone can never be as cheap as one specific to the issue/people at hand. It just needs to always be available as a fallback.
I think what you are mentioning is basically how settlements work.
I just can’t see how an arbitration company that is selected by a company will ever have the incentives to side with consumers.
I can only see arbitration working when both sides have equal leverage. Large company vs large company, citizen vs citizen. And both sides must have a say on which arbitration company is selected.
What I'm mentioning will frequently lead to settlements, but the choice of whether or not to use arbitration is typically made before there's any case.
Both sides don't have equal leverage today because of an information asymmetry market failure. The cost to the consumer to read the ToS (and research its arbitrators) for everything they buy is unreasonably high, while it costs the company very little. If consumers only had to research arbitrators after the fact, then the company would have a strong incentive to agree to a fair one, avoiding the public courts.