[Congressional Record Volume 162, Number 60 (Tuesday, April 19, 2016)]
[Extensions of Remarks]
[Pages E511-E512]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           FORCED ARBITRATION

                                 ______
                                 

                               speech of

                       HON. DONALD S. BEYER, JR.

                              of virginia

                    in the house of representatives

                        Thursday, April 14, 2016

  Mr. BEYER. Mr. Speaker, I stand here today to express my opposition 
to the increasing use of forced or binding arbitration. Most Americans 
don't even know about forced or binding arbitration until it happens to 
them.
  Clauses are buried in the fine print of everyday contracts and, 
before they know it, they are unknowingly compelled to give up their 
legal rights. Quite honestly, if we just take into consideration human 
behavior--most Americans don't read the fine print even if they know 
they should. And let's assume that if they did, I guarantee you most 
don't have enough of legal background to recognize problem language 
when they read it.
  This is concerning and dangerous when we consider that arbitration 
clauses are increasingly being inserted into consumer and employment 
contracts. This allows companies to circumvent the courts and bars 
people from joining together in class-action lawsuits. And class action 
law suits are realistically one of the few tools citizens have to fight 
illegal or deceitful business practices.
  Applying for a credit card, using a cellphone, getting cable or 
Internet service and you are likely agreeing to private arbitration 
unknowingly. This is concerning because arbitration is heavily weighted 
in favor of the more powerful party. Not only does the corporation that 
wrote the contract set the terms of arbitration, but it also often 
decides on the arbitrator. Arbitrators do not have to be trained in the 
law, nor are they required to follow the law.
  Quite simply, arbitration lacks many of the fundamental guarantees of 
fairness that a court provides. As a small business owner, I view 
binding arbitration as plainly unfair to the consumer and also 
unnecessary in the operation of a successful business practice. My 
business currently operates successfully without engaging in the same 
predatory practice for consumers.
  Lawyers can continually put together more sophisticatedly drafted 
agreements meaning courts routinely enforce such agreements. That means 
we have a legally enforceable culture that is reinforcing these one-
sided provisions which unfairly tilt the playing field in favor of one 
party. This is a practice we must stop. I am here to say we must stop 
it. Let us

[[Page E512]]

stop this predatory practice on consumers and bid binding arbitration a 
farewell.

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