Like, it’s such a punch in the face of the user when it’s hidden in the terms of service. It’s so scummy it hurts. I still can’t believe corporations are getting away with avoiding going through the legal system like that.
Here are the cons of an arbitration clause:
- You lose the right to class action lawsuits
- It’s less public than going through the legal system


Here’s the thing. In the US, it isn’t the law. When they passed the federal arbitration act, it was written to apply to businesses who mutually agree to arbitration. It was meant to stop companies that agreed to arbitrate and then sued after they didn’t like the arbitration results.
The supreme court one day just randomly decided it applies outside of that context. Even though it wasn’t written to do that and hadn’t done so for decades.
So in my personal opinion, it is outlawed, our court is just evil extremists. Thanks for coming to my tedtalk.
What’s the supreme court decision you just mentioned? I couldn’t find it on Google.
I’m familiar with it through Circuit City Stores, Inc. v. Adams, which is about employment arbitration. The majority argued that it was the “natural reading” that the Federal Arbitration Act intended to cover employment arbitration agreements. The dissent goes through the legislative history of the Act to establish that no one in 1925 intended the federal arbitration act to cover employment agreements. There is probably a lot more caselaw to this Act than just employment arbitration, but that’s what my 1L paper was on.
Dissent quoted below: