A Boring Dystopia

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Chat is this real (lemmy.dbzer0.com)

submitted 2 months ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 2 months ago

What I'm mentioning will frequently lead to settlements, but the choice of whether or not to use arbitration is typically made before there's any case.

Both sides don't have equal leverage today because of an information asymmetry market failure. The cost to the consumer to read the ToS (and research its arbitrators) for everything they buy is unreasonably high, while it costs the company very little. If consumers only had to research arbitrators after the fact, then the company would have a strong incentive to agree to a fair one, avoiding the public courts.