Published: March 2023

FCC should ban forced arbitration clauses in telecommunications services contracts

Advocacy groups responded to the FCC’s call for comment on proposed rulemaking on data breach reporting requirements and urged the agency to consider banning forced arbitration clauses in telecommunications service contracts with consumers, which allow corporations to avoid consequences for their wrongdoing.

Consumer advocacy groups responded to the Federal Communications Commission’s (FCC) call for comment on proposed rulemaking on data breach reporting requirements, commending the stated goal of providing greater protections to the public while pointing out that a major step in that direction is to ban forced arbitration clauses in service contracts between telecom companies and their customers. Such clauses allow companies to avoid consequences when they violate consumers’ rights. Studies show that few customers bring their claims to arbitration, and those who do typically lose. When bad actors have to answer claims in court, it has a strong deterrent effect from future negligent behavior. It also offers consumers a real chance at being made whole.

Lead Organization

Public Citizen

More Information

Click here to read the coalition letter.

Download PDF

No Download Available