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Arbitration Clauses Can Give Consumer Pause

With phone and internet terms and service agreements more prevalent, consumers should be aware of a frequently found clause in contracts and agreements.

“Arbitration clauses” are stipulations by businesses to control complaints that may be lodged against their corporation.  That means in a case of a complaint,  instead of litigation, both parties agree to an independent arbitrator to decide and rule.

The idea behind arbitration was to speed up resolutions and not bog down the courts with litigation.  Since arbitration is a confidential proceeding, it is not open to public scrutiny.

Attorney James Downey of Blazkovec, Blazkovec & Downey in Algoma talks about what consumers need to know about arbitration clauses.

Downey went on to say that consumers can “cross out” the clause on agreements, but businesses then have the right to not provide the desired services. In short, when it comes to agreeing to terms and service agreements, the old adage of “Buyer Beware” is true.



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