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Why works it matter who's actually making the payment? I would've thought what matters is who is bringing them business & causing them to earn money, not who is
by dataflow 5y ago
Why works it matter who's actually making the payment? I would've thought what matters is who is bringing them business & causing them to earn money, not who is actually paying them? It's not like customers can take their businesses to another arbitrator.
- cortesoft 5y agoBecause other potential customers will see that the arbitrator usually sides with the business and choose to use their arbitration service.
- dataflow 5y agoSorry I still don't get it. Couldn't the same thing happen even if consumers were paying? It's still the business that's bringing them the fees (even if consumers are paying them), so it seems like they would still be incentivized to side with the businesses rather than with the consumers. The consumers have no choice here, so I don't see what incentive they have to rule in favor of consumers even if they're the ones making the payments.
- Talanes 5y ago>The consumers have no choice here For the choices that matter to the arbitration firm, they absolutely do. Without a customer who is willing to initiate arbitration proceedings, there are no fees to be collected. If there is a huge upfront financial burden to the customers, the customers are much more likely to just drop the whole matter. And while the businesses would absolutely consider consumers not pursuing grievances to be a win, the arbitration firm does have an incentive to actually have there be some arbitration.