With all big companies seemingly colluding to update their terms of service at the same time recently to include something about “ARBITRATION” – can someone please explain what this Arbitration agreement is?

Question

With all big companies seemingly colluding to update their terms of service at the same time recently to include something about “ARBITRATION” – can someone please explain what this Arbitration agreement is?

In: Other

Answer 1

It’s in response to a recent number of mass arbitration filings by class action plaintiff attorneys. Because companies generally have to pay the arbitration fees, someone realized that you could file thousands of arbitration claims and then demand the company settle to avoid a multi-million dollar arbitration bill.