Consumer Arbitration Clauses

Consumer arbitration clauses are provisions included in contracts that require disputes between consumers and companies to be resolved through arbitration instead of courts. Arbitration is a private process where an impartial arbitrator makes a decision. These clauses are meant to provide a faster and often less expensive way to settle disputes. However, they can limit consumers' rights to sue publicly or participate in class-action lawsuits. Many companies include these clauses to manage legal risks and costs, but consumers should carefully review contracts to understand how their rights may be affected in case of a dispute.