[Congressional Record Volume 148, Number 98 (Thursday, July 18, 2002)]
[Extensions of Remarks]
[Page E1301]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROTECT CONSUMERS' RIGHT TO TAKE COMPANIES TO COURT WHEN DISAGREEMENTS 
                                 ARISE

                                 ______
                                 

                         HON. LUIS V. GUTIERREZ

                              of illinois

                    in the house of representatives

                        Thursday, July 18, 2002

  Mr. GUTIERREZ. Mr. Speaker, today I am introducing the ``Consumer 
Fairness Act of 2002,'' a bill to address arbitration clauses that are 
unilaterally imposed on consumers as unfair and deceptive trade 
practices and prohibit their use in consumer transactions.
  Increasingly, companies such as banks and credit card companies, 
computer makers, insurance firms and car dealers are requiring 
customers to waive their right to sue when a disagreement occurs. 
Furthermore, these mandatory arbitration clauses are usually not 
clearly disclosed in agreements and contracts.
  Requiring consumers, as a mandatory condition of providing a service 
or selling a good, to waive his or her right to pursue a grievance 
through the United States justice system is problematic for several 
reasons.
  Arbitration can cost more than pursuing a case in court, with fees 
that often run into the thousands of dollars.
  Arbitration limits the evidence that can be used.
  Arbitration usually does not allow for appeals.
  To address these problems, this Act would prohibit companies from 
using clauses in contracts and sales agreements that require consumers 
to agree, in advance, to submit any disagreements to arbitrators. Such 
clauses ban consumers from suing a company and participating in class 
action lawsuits. This legislation protects consumers' right to sue and 
clarifies that consumers can choose to resolve their disputes with 
companies through arbitration.
  Mr. Speaker, I urge my colleagues to support this much-needed 
legislation for all consumers in America.

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