Released: September 20, 2019

House approves bill to allow you to sue companies

An uphill battle still awaits the FAIR Act in the Senate

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Today, in a 225-186 vote, the House of Representatives passed a bipartisan bill that would end forced arbitration requirements in consumer contracts. However, the Forced Arbitration Injustice Repeal (FAIR) Act would need to be successful in the Senate, where it is expected to face an uphill battle, and then be signed into law by President Donald Trump—another potential brick wall.

Linda Sherry, Consumer Action's director of national priorities, said: "It's gratifying to see this level of bipartisan support in Congress for a law that would ban companies from forcing customers to give up their day in court. Consumer Action's been fighting mandatory arbitration clauses for close to 20 years and this is the nearest we've come to a public reckoning for this unfair practice. We're hopeful this is the beginning of the end of allowing powerful corporate interests to avoid accountability. No more 'get out of jail free' cards for companies and employers who care nothing for the legal rights of their customers!”

The FAIR Act, supported by Consumer Action and dozens of its allies, would prevent companies from forcing consumers, employees and small businesses to take legal disputes to privately run arbitration forums instead of courts of law. Litigants would be free to voluntarily choose arbitration—but they would not be forced to give up the right to go to court or join class action lawsuits because of unconscionable terms buried in take-it-or-leave-it contracts.

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Through education and advocacy, Consumer Action fights for strong consumer rights and policies that promote fairness and financial prosperity for underrepresented consumers nationwide.