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?
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Arbitration is like “pre-court” basically. It’s more or less a mediation, where both interested parties sit before an “impartial” third party to try to reach a settlement before actually hitting a court room. In theory it’s supposed to save everyone time and money.
In practice, it’s just another hurdle to filing a lawsuit against a company. By having these clauses is the “user agreement” corporations are able to waste your time and energy. The whole point is they hope you’ll either a) burn out and give up, b) take a smaller settlement and sign an NDA or c) waste so much time in arbitration that by the time you actually get to court, you don’t have adequate time/energy/money to actually fight and win.
There’s not any collusion, it’s just counsel for one company came up with this, and others heard about it and ran with it.
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