NACA is one of the leaders in a national campaign against the unfair practice of forced arbitration. Buried in the fine print of everything from credit card billing inserts and cellular phone service disclosures, to employee handbooks and nursing home admissions contracts, forced arbitration is a private system set up by corporations to favor corporations. Embedded in these non-negotiable and many times unnoticed contract terms, forced arbitration creates an unfair shield that allows corporations to escape accountability and denies Americans access to the courts.
NACA, in conjunction with the Fair Arbitration Now Coalition, is fighting to obtain meaningful federal legislation that bans the unfair practice of forced arbitration from consumer, employment, and franchisee contracts. The Arbitration Fairness Act and The Fairness in Nursing Home Arbitration Act, as introduced in the 110th and 111th Congresses, followed the original intent of the Federal Arbitration Act by requiring that agreements to arbitrate disputes be made after the dispute has arisen. Neither act prohibited the use of arbitration, but simply restored traditional market principles by making arbitration firms compete for the business of both parties, instead of catering to the repeat business of the corporate-only side of the dispute.
In the 112th Congress NACA will continue to push for the passage of legislation that bans forced arbitration from consumer, employment and franchisee contracts. Through a comprehensive campaign to educate Congress about the unfairness of forced arbitration, NACA intends to get both pieces of legislation through their respective Congressional Committees and up for a full floor vote. NACA will also look to ensure that both the Securities and Exchange Commission and the Consumer Financial Protection Bureau use its newly granted power under the Dodd-Frank Wall Street Reform and Consumer Protection Act to ban forced arbitration from consumer contracts.