Supreme Court rules in favor of AT&T in arbitration case
The US Supreme Court ruled in favor of AT&T confirming the wireless carrier can force customers to enter arbitration instead of filing class-action lawsuits. The 5-4 ruling upholds the arbitration clause frequently found in wireless contracts. Two federal courts previously ruled against AT&T claiming these arbitration clauses prohibit an individual from filing a class action lawsuit.
The Supreme Court reversed these rulings by confirming arbitration should be an option prior to a class action lawsuit and pointed to a federal law that promotes arbitration to justify their decision. These arbitration clauses are disliked by consumer advocate groups as they often contain wording such as the following:
AT&T and you agree to arbitrate all disputes and claims between us
You agree that, by entering into this Agreement, you and AT&T are each waiving the right to a trial by jury or to participate in a class action
These clauses limit the ability of customers to pursue a legal solution to grievances when a call to customer service or a letter to the Better Business Bureau has no effect. More often than not dealing directly with the carrier is less successful than taking the matter to the courts. As a consumer, what do you think? Do you agree or disagree with this decision?
[Via WSJ]
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