Coalition Letter on H.R. 1423, "Forced Arbitration Injustice Repeal (FAIR) Act"

Monday, September 9, 2019 - 5:45pm

To The Members of the United States Congress:

            We urge you to oppose the “Forced Arbitration Injustice Repeal (or FAIR) Act,” (H.R. 1423 and S. 610), which would effectively outlaw arbitration provisions in private contracts. Federal law has protected arbitration as a means of resolving disputes between businesses, consumers and employees since 1925. These bills will result in more class action lawsuits. 

            The use of pre-dispute arbitration clauses in contracts benefits consumers, small businesses and employees. For example, a recent study by the Institute for Legal Reform found that employees prevailed three times more often, recovered twice as much money, and resolved their claims more quickly in arbitration than in litigation.[1] In addition, courts work to ensure that arbitration agreements of all types are fair and do not provide an untoward advantage to any party.

            The only clear beneficiary of eliminating arbitration clauses are plaintiffs’ trial lawyers who would directly benefit from class action litigation replacing cost-effective and fair arbitration as a viable way to resolve disputes. Their gain would come at the expense of consumers, small businesses and employees. Studies have shown that class action settlements frequently provide, at best, a very low return to class members while the plaintiffs’ attorneys take in millions of dollars.

            Accordingly, we urge you to oppose H.R. 1423 and S. 610. 

Sincerely,

 

National

ACA International

American Bankers Association

American Financial Services Association

American Foundry Society

American International Automobile Dealers Association

American Staffing Association

American Tort Reform Association

American Transaction Processors Coalition

Consumer Bankers Association

Consumer Data Industry Association

Cruise Lines International Association

CTIA

Electronic Transactions Association

Food Marketing Institute

Foodservice Equipment Distributors Association (FEDA)   

Innovative Payments Association

International Franchise Association

Lawyers for Civil Justice

National Association of Manufacturers

National Association of Wholesaler-Distributors      

National Black Chamber of Commerce

National Independent Automobile Dealers Association

National Restaurant Association

National Retail Federation

NCTA - The Internet & Television Association

The National Association of Mutual Insurance Companies

Professional Association for Customer Engagement (PACE)

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USTelecom

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