Table of Content
Reviewed by an award-winning attorney at DALLI MARINO
Salvatore Marino, Esq. is a founding member of Dalli & Marino, LLP, and has been the managing partner since the firm’s inception in 1996, representing clients in New York City, Brooklyn, Bronx, Queens, Staten Island, Nassau County, Suffolk County and Westchester.
By JESSICA SILVER-GREENBERG and ROBERT GEBELOFF
On Page 5 of a credit card contract used by American Express, beneath an explainer on interest rates and late fees, past the details about annual membership, is a clause that most customers probably miss. If cardholders have a problem with their account, American Express explains, the company “may elect to resolve any claim by individual arbitration.”
Those nine words are at the center of a far-reaching power play orchestrated by American corporations, an investigation by The New York Times has found.
By inserting individual arbitration clauses into a soaring number of consumer and employment contracts, companies like American Express devised a way to circumvent the courts and bar people from joining together in class-action lawsuits, realistically the only tool citizens have to fight illegal or deceitful business practices.
Over the last few years, it has become increasingly difficult to apply for a credit card, use a cellphone, get cable or Internet service, or shop online without agreeing to private arbitration. The same applies to getting a job, renting a car or placing a relative in a nursing home.
