Taking It Back!: FCC’s New Promise to Tackle Forced Arbitration and Protect Consumers

The week of Oct 24, the Federal Communications Commission made two huge moves to help consumers navigate the digital marketplace. The first was to finally pass its long-awaited landmark broadband privacy rules. But tucked inside that order was something equally important, if less high-profile: a commitment by the FCC that by February 2017, it will embark on a proceeding to address mandatory binding (or forced) arbitration clauses.

If these have flown under the radar for you, it’s because they are the epitome of fine print. Forced arbitration clauses are sneaky language injected into contracts, which can eliminate one of your fundamental legal remedies as a consumer: the class action lawsuit. Without the threat of a class action, consumers can be left without a practical legal remedy, which is critical in the event that a company pursues business practices that clearly rip customers off. This move was just the latest example of the FCC fighting for consumer rights in the face of continued pushback from corporate interests. Consumers should cheer loudly - but also remember that this is just the kick-off. Important issues for consumers remain on the FCC’s agenda, and it remains incumbent upon all of us to be vigilant -- to help the Commission enact yet another critical consumer protection in the telecommunications industry, which is central in our daily lives. And, much like in a class action itself, that’s something we can all get behind together.