Be INFORMED

Wednesday, April 27, 2011

Supreme Court Screws U.S. Consumers

Oh yes! The Supreme American Taliban Court voted in favor of fucking the American consumer/worker.

by mrbeen38 Wed Apr 27, 2011 ( Link at bottom of story ) Today the United States Supreme Court, in a 5-4 ruling, issued an incredibly disturbing opinion for United States consumers (i.e. all of us). In AT&T Mobility v. Concepcion the Court held that corporations can ban consumers' rights to take corporations to court, individually or in class actions, through arbitration clauses in consumer contracts. Virtually every consumer contract we enter into contains buried within it a term saying that by signing the contract we agree to settle all disputes in arbitration and do not have a right to band our claims together in court in a class action. In the case of Discover Bank v. Superior Court, 36 Cal. 4th 148 (2005) the California Supreme Court held that the inclusion of such clauses in consumer contracts was unconscionable in light of the fact that consumers have absolutely no say as to the terms of the agreements they enter into with corporations. Thus those clauses are unenforceable and consumers are allowed to file class action claims in state courts. Today, the United States Supreme Court overturned that opinion holding that states do not have the right to find a contract's arbitration clause unenforceable because their ability to do so is preempted by the Federal Arbitration Act. What does this mean for you and I? Well, in short, without access to courts and without the right to band together in class actions, consumers will have virtually no ability to put an end to bad and illegal corporate practices and will have virtually no ability to recover any damages they suffer resulting from bad corporate practices. Most individuals, for example, are not going to take a corporation to arbitration for a small claim of say $50. If they did so, the cost of arbitration to them would likely exceed the amount of their claim. Likewise, in arbitration, consumers would have no right or ability to obtain an injunction stopping a corporation from further engaging in an illegal practice. In short then it means that any time you have to sign a contract for a product or service, corporations have been given free reign to falsely advertise their products, breach the terms of the contract, and outright steal money from you and there is little or nothing you can do about it. The threat of class action litigation has often served as a deterrent on corporations from engaging in illegal and un-consumer friendly practices. Through their decision, the Supreme Court has removed this deterrence and corporations are free to rip consumers off with virtual impunity and without fear of legal action that would otherwise vindicate the rights of consumers. Unsurprisingly, this story appears to have received very little media coverage despite its far reaching implications for virtually every person in the United States. The Supreme Court has given corporations yet another victory in their quest to utterly dominate the people of the United States. Today is a truly sad day for consumers - all of us - the People of the United States of America.Updated by mrbeen38 at Wed Apr 27, 2011 at 03:51 PM PDT Wow! The rec list! This is my first attempt at a diary so thank you very much to all who recommended it. I tried to include a link to the opinion when I initially wrote this diary but for some reason it didn't work, so here is the link: http://www.supremecourt.gov/...