Arbitration has been used as an instrument to forego laws and obligations that protect consumers against fraud, low quality and unsafe products in addition to exploitative prices and terms of service. Arbitration clauses have been used by companies to hinder consumers of their products from filing law suits and class actions against the companies for policy and term alterations and revisions, which may affect the consumers adversely. These are some of the factors that have triggered widespread decrying of court decisions to uphold the draconian terms of service adopted by the credit card companies.
Arbitration clauses are legally binding when appended by the consumer or customer of a product or financial service. Equally, the arbitration clauses are almost impossible to over-turn or win against in a court of law. This is given the lengthy litigation processes in addition to the high costs and hassle associated with the procedural processes of a case hearing. These facts make it unfeasible for consumers to pursue in addition to making it difficult for them to win the cases, given the power of the credit card companies and corporations.
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Additionally, oppressive and exploitative policies and charges forced on to the consumers will be impossible to challenge in a court of law. This puts customers in a quagmire given the fact that most consumers may be forced to be subjected to unsubstantiated fees and charges which will deny them a considerable amount of utility derived from the products. Additionally, these downsides may apply for businesses in a global market given the elasticity of demand in global economies. A wide range of consumer goods gives credit companies less incentive to enforce oppressive laws.
