There is unequal bargaining power between consumers and traders As a general rule, binding arbitration contracts before litigation allow traders to choose the forum and decide on the terms. This invites the dice in favour of the accused who are in a superior position to choose forums that govern in their favour. If you bought from a merchant with a binding arbitration agreement, there is not much you can do. Also because of the limited discovery, and the secrecy inherent in arbitration, someone who is the victim of a kilometer meter fraud can never discover that they are one of the 100 who have been cheated in the same way. This means that merchants who deliberately participate in a mileage meter fraud model and practice can never be brought to justice for their crimes, even if they are serial scammers. The arbitrator agreed and awarded us$2,000 to the consumer for his TILA application. The arbitrator was not stingy in awarding additional amounts, threw $50,000 in punitive damages, $49,917.50 in legal fees, and expenses of $2,979.16. That`s over $100,000, and remember, the merchant had to pay his own lawyer on top of that money. If the dealer doesn`t give in, ask yourself why it`s become so important to them. Were their clients so dissatisfied that they had to take legal action? Think about it. Car dealers and consumers agree: mandatory single public citizens take the arguments that car dealers have made before Congress, why they should be protected by manufacturers` requirements for mandatory conciliation and shows how and why consumers argue for the same protection are similar.
Mandatory arbitration clauses are becoming more common in day-to-day transactions, but many consumers are unaware that they are subject to binding arbitration rules. The FTC recently released a report summarizing its enforcement measures, roundtable results, consumer workshops and face-to-face interviews with 38 Washington D.C Metro consumers, focusing on deceptive advertising practices, cash delivery and voluntary protection products. I do not know of any merchant who does not have one.