The CFPB has just released its much-awaited proposed rule on forced arbitration clauses — arguably the single biggest step the Bureau can take to level the playing field for American consumers. If adopted after notice-and-comment, the CFPB's new rule would prohibit forced arbitration clauses that prevent consumers from banding together to hold companies accountable in court, […]
Category Archives: Arbitration
by Jeff Sovern Earlier today, the US Chamber of Commerce released a letter to CFPB Director Richard Cordray from David Hirschmann, President and CEO, Center for Capital Markets Competitiveness, urging the Director to address certain issues at Thursday's CFPB arbitration field hearing. Here's one of those issues, as stated in the letter: [T]he public would benefit […]
The CFPB typically invites representatives from various organizations to speak at its field hearings. According to an email report, U.S. Chamber Center for Capital Markets Competitiveness Executive Director Travis Norton will be one of the speakers at next Thursday's arbitration field hearing.
Here. Because the Bureau usually combines field hearings with announcements of related developments, it is likely to announce its proposed arbitration rules that day.
Imre S. Szalai of Loyola New Orleans has written DIRECTV, Inc. v. Imburgia: How the Supreme Court Used a Jedi Mind Trick To Turn Arbitration Law Upside Down, 32 Ohio State Journal on Dispute Resolution, 1, (2016 Forthcoming). Here's the abstract: The Federal Arbitration Act (FAA) is the primary federal statute governing millions of arbitration […]
Here. Excerpt: [M]any of the Roberts Court’s most important business cases were decided by a 5–4 margin, with the five conservative Justices voting as a bloc. And, as [Vanderbilt law professor Brian] Fitzpatrick points out, “Scalia has done more than any other justice in making it difficult for consumers and employees to bring class-action suits. […]
by Jeff Sovern Gregory Gauthier has pointed out that Starbucks has changed its arbitration clause and wonders why. The old version is described here. The new version is somewhat less onerous. For example, it permits the arbitration to be "held in a reasonably convenient location in the state in which you reside or at another mutually agreed […]
Here. A heart-breaking story.