Proposed telecom arbitration ban is bad law and bad policy

[Commentary] During the internet service provider privacy proceeding, Federal Communications Commission (FCC) Commissioner Mignon Clyburn teamed up with Sen Al Franken (D-MN) to call for a ban on arbitration clauses in consumer telecommunications contracts. They argued that such clauses “effectively lock[] the courthouse door” on customers and allow companies to evade responsibility for misbehavior. The proposed ban did not make it into the final privacy order, though FCC Chairman Tom Wheeler promised to open a new rulemaking proceeding on the issue in February.

Thankfully, the November election likely makes this threat moot. But because the issue is unlikely to go away, it is worth exploring why this proposed ban is both bad law and bad policy. That’s the subject of my most recent Perspectives article, published earlier in Dec by the Free State Foundation.