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For decades, corporate America has held the upper hand when it came to disputes with consumers and workers. But that could be changing.
Buried deep in the fine print of user agreements and employment contracts, mandatory arbitration clauses force Americans to take their lawsuits out of the federal court system and resolve complaints in the private arbitration system—a separate legal dispute resolution process without some of the same protections afforded in court cases.
Many have argued that arbitration discourages consumers and workers from even raising the dispute at all. But the status quo may be shifting due to the use of “mass arbitration” against corporations—a process in which thousands or even tens of thousands file individual arbitration cases against a company in a coordinated effort.
TurboTax’s parent company, Intuit, is the latest major corporation facing a barrage of arbitration claims after consumers were blocked from moving forward with a class action lawsuit courtesy of mandatory arbitration stipulations. And how they navigate the deluge could lead other companies to reconsider how they engage with legal disputes.
The latest target of ‘mass arbitration’: Intuit
Intuit’s legal proceedings started in 2019, when consumers filed a class-action lawsuit against the tax giant, claiming the company’s “free” tax filing products were...
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https://fortune.com/2022/04/18/corporate-america-mass-arbitration-consumer-po...