Johnson - Feingold Arbitration Fairness Act 2007

Updated July 2007- U.S. Senator Russ Feingold (D-WI) and U.S. Representative Hank Johnson (D-GA) introduced comprehensive legislation in the Senate and House, respectively, to ensure Americans are not forced into mandatory arbitration agreements to resolve employment, consumer, franchise or civil rights disputes.

Arbitration is billed as an inexpensive alternative to civil lawsuits when it is anything but inexpensive.  The opposite is often the case.  Filing fees and other expenses in arbitration result in much higher costs for the parties than civil actions.  Attorneys’ fees, whether hourly or based on a contingency, are similar regardless of forum.

"With mandatory pre-dispute arbitration privatizing our civil justice system - a system we fought a revolution for - fairness in the marketplace is undermined and consumers are denied any remedy for fraud and deception," said Public Citizen President Joan Claybrook.

The list of public interest groups behind the Feingold-Johnson bill is impressive:  Consumers Union, Public Citizen, American Association for Justice, Center for Responsible Lending, Consumer Federation of America, Homeowners Against Deficient Dwellings, Home Owners for Better Building, National Association of Consumer Advocates, National Consumer Law Center (on behalf of its low income clients), National Consumer Coalition for Nursing Home Reform, the National Employment Lawyers Association and Public Justice all support the legislation.

The bill will ensure a more even playing field in arbitration agreements for consumers and has a consumer-oriented grass roots reform movementbehind it.

See Also

  1. Consumer Fraud
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