What Disney & Uber Don’t Want You to Know

Summary

The hidden dangers of forced arbitration clauses in terms of service agreements are often buried in the fine print, leaving consumers unaware of their legal rights being waived. Companies like Disney, Uber, and Airbnb use these clauses to avoid legal accountability, making it nearly impossible for individuals to seek justice in court. Arbitration may seem like a convenient option, but it often favors corporations and conceals harmful practices. This video highlights real-life cases where arbitration has silenced victims and discusses efforts to limit these clauses through legislation. It urges consumers to become aware and push for change.

Takeaways

• 😀 Hidden arbitration clauses in 'Terms and Conditions' can waive important consumer rights and protect companies from legal accountability.
• 😀 Arbitration is a process where a third party resolves disputes without a judge or jury, but it can be unfair to consumers.
• 😀 Companies like Disney, Uber, and Airbnb are using arbitration clauses to avoid liability, even in serious cases like wrongful death or accidents.
• 😀 Arbitration clauses are often buried in lengthy legal documents that are hard to read or understand, making it difficult for consumers to know what they’re agreeing to.
• 😀 Even when consumers sign up for services like Uber or Airbnb, they may unknowingly agree to arbitration, which limits their ability to take legal action in court.
• 😀 Arbitration is often biased in favor of corporations because they choose the arbitration providers, which can result in unfair rulings for consumers.
• 😀 Discovery, the process of exchanging critical evidence during legal cases, is restricted in arbitration, preventing transparency and public accountability.
• 😀 Important information about corporate misconduct, like the Ford Pinto case, can be kept secret in arbitration, allowing companies to continue harmful practices.
• 😀 Some arbitration clauses are written so broadly that they can apply to disputes unrelated to the original contract, making it nearly impossible for consumers to opt-out.
• 😀 Efforts to regulate and limit arbitration clauses have faced significant opposition from corporations and lawmakers, leaving consumers vulnerable to forced arbitration.

Q & A

What is the main issue with arbitration clauses in terms of service agreements?

Arbitration clauses in terms of service agreements are often used by corporations to prevent consumers from taking legal action in a public court. These clauses force disputes into private arbitration, where consumers face significant disadvantages, such as lack of transparency, limited discovery, and restricted access to legal precedents.

How do companies like Disney and Uber use arbitration clauses to avoid responsibility?

Companies like Disney and Uber use arbitration clauses to avoid public legal scrutiny. For example, Disney attempted to use its Disney+ subscription agreement to force a grieving husband into arbitration after a wrongful death at Disney Springs. Similarly, Uber tried to enforce arbitration after a severe car accident involving one of its drivers, which would have bypassed the public court system.

Why is arbitration considered unfair to consumers?

Arbitration is often unfair to consumers because it prevents them from accessing key legal processes like discovery, where they can obtain damaging evidence against companies. It also keeps arbitration proceedings private, meaning the public remains unaware of corporate wrongdoing. Additionally, arbitration decisions often favor companies, as corporations typically choose the arbitrators and can avoid setting legal precedents.

What are some real-world examples of companies using arbitration clauses to avoid accountability?

Examples include Uber, which used arbitration to block a lawsuit after a car accident, and Wayfair, which sent a class action regarding bedbug-infested furniture to arbitration. Airbnb also tried to force a wrongful death case into arbitration, despite the victim's mother not having rented the property in question.

How does arbitration impact the transparency of corporate actions?

Arbitration diminishes transparency because any damaging evidence discovered during the arbitration process remains confidential. This prevents the public from learning about harmful corporate practices, such as a company knowingly selling unsafe products or ignoring consumer safety concerns.

What role does 'discovery' play in legal proceedings, and why is it important?

Discovery is the process where both parties in a lawsuit exchange information, such as documents and depositions. It plays a crucial role in uncovering important evidence, such as internal memos that might show a company's negligence. In arbitration, discovery is often limited or non-existent, which hinders the ability to uncover crucial evidence that could impact a case.

What are the dangers of 'infinite arbitration clauses'?

Infinite arbitration clauses are overly broad agreements that can force consumers into arbitration for any dispute related to the company, even for issues they were never directly involved with. These clauses can bind consumers forever, even for incidents unrelated to the original contract, making it difficult to seek justice for unforeseen circumstances.

How has the U.S. government attempted to regulate arbitration clauses?

The U.S. government, through agencies like the Consumer Financial Protection Bureau (CFPB), has attempted to regulate arbitration clauses, particularly in consumer financial contracts. In 2017, the CFPB tried to limit arbitration clauses in cases that also involved class action waivers, but the rule was blocked by Congress. Despite some successes in limiting forced arbitration in specific cases, such as sexual assault, broader reforms have not yet been achieved.

What is the 'Fair Act' and how could it help consumers?

The Fair Act is proposed legislation aimed at banning forced arbitration clauses in cases involving consumer disputes, antitrust violations, employment issues, and civil rights cases. If passed, it would protect consumers from being silenced by arbitration agreements and ensure they have the opportunity to take their cases to public court.

Why is public awareness of arbitration clauses important?

Public awareness of arbitration clauses is crucial because most consumers don't realize the implications of agreeing to them until it's too late. By understanding the hidden dangers in terms of service agreements, consumers can make more informed decisions and potentially push for reforms that would make arbitration more fair and transparent.