MINNEAPOLIS -- Sen. Al Franken is waging war against a clause that appears in a range of consumer and employment contracts.
Pre-dispute arbitration agreements can be found in "cell phone contracts, internet service contracts, any relationship that a consumer has with a corporation or a company may have an arbitration agreement," said consumer attorney Shawn J. Wanta with Baillon Thome Jozwiak & Wanta LLP.
Once signed, the pre-dispute arbitration agreement means the
"You agree to take your dispute and resolve it behind closed doors without the protections of an appeal," said Wanta.
"You've given up your right to a jury trial.
"According to Wanta, companies often select the arbitrators and "the only rules that apply are the rules that are imposed by the arbitration agreement."
The clauses are also found in many employment contracts.
"A lot of the large employers use arbitration as a way to resolve disputes regarding sexual harassment, retaliation,
Sen. Franken has been a vocal opponent of pre-dispute arbitration agreements.
"Corporations use these agreements to shield themselves from consumers' best interests," said Franken in a phone conversation on Saturday.
"I have a piece of legislation called the Arbitration Fairness Act, which I have introduced," said Franken.
The Arbitration Fairness Act would prohibit the use of mandatory pre-dispute arbitration agreements in consumer and employment contracts.
"Arbitration is something that you can choose to [resort] to, if you'd like after the dispute arises, but it shouldn't prevent you from suing the company that is taking advantage of you," argued Franken.
According to a recent report from the Consumer Financial Protection Bureau, three out of four consumers that took part in a survey did not know if they were subject to an arbitration clause.
