A New York Times investigation claims that corporations like American Express are effectively banning customers from filing class action lawsuits, thanks to arbitration clauses buried deep in their contracts. Companies often prefer arbitration because it is typically cheaper than litigation. However, consumer advocates say class action lawsuits are a key tool in holding corporations accountable. We look at the Times' investigation and discuss the Consumer Financial Protection Bureau's recent announcement that it may try eliminating lawsuit waivers in consumer contracts.
Report Finds Companies' Fine Print Blocks Class Action Lawsuits
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(Chris Hondros/Getty Images)
Jessica Silver-Greenberg, business reporter, New York Times