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The one key point you miss is it is the companies that insert mandatory arbitration clauses that get to pick and choose arbitrators. Why should an arbitrator ru
by throwaway2048 14y ago
The one key point you miss is it is the companies that insert mandatory arbitration clauses that get to pick and choose arbitrators. Why should an arbitrator rule against the company that is employing them, especially as it virtually ensures the company will not do so in the future?
Arbitration is really only fair and effective between equal peers that can choose to split the costs of the arbitration, and agree upon an arbitrator together.
In cases of arbitration between a large entity and a single small customer, the large entity wins virtually every single time. The top 10 arbitration firms in the USA only rule in the favor of the consumer/employee 1.6% of the time [1]
There's not a single health plan available in many states that does not require agreeing to binding arbitration for coverage. None of them allow you to opt out, even if you're willing to pay more. Sign away your right to sue, or no coverage for you. Consider that under health care reform, one is required to purchase one of these plans. There are dozens of industries that are like this, where it is virtually impossible to receive a service or a good of that class without agreeing to mandatory binding arbitration, such as residential ISPs.
Add into the fact there is almost no way to appeal decisions, make no mistake, Instagram is not doing this for your benefit.
The term "kangaroo court" comes to mind.
[1] http://consumerist.com/2007/07/26/support-the-arbitration-fairness-act/ http://consumerist.com/2007/07/26/support-the-arbitration-fa...
- saurik 14y agoHealth care plans supposedly tend to hire physician-specific arbitrators under the idea "we need domain experts, or this turns into an anti-medical-establishment 'kangaroo court'", something they are afraid of when using a real court, as a jury of random people or even a judge with no knowledge of what is reasonable or not" can be painful. That said, PayPal and Instagram both choose AAA (American Association of Arbiters), which honestly seems to be sufficiently large as to not be concerned about bothering anyone. FWIW, my lawyer seemed to believe they would be fair if I ever needed to arbitrate with PayPal: them being PayPal-biased was not a concern. As for the low rate... I would have expected that... wouldn't you have? With an arbitration clause in place that allows you to initiate and complete a complaint from your home over the phone, one would expect to suddenly get many more complaints than requiring users to actually sue you. Most users really do have ludicrous expectations or misunderstandings, and probably go to arbitration over tons of things that have nothing at all to do with the business they think they are bothered with.