A coalition of national and state business associations has sent a letter to the U.S. House of Representatives urging opposition to H.R. 963, the “Forced Arbitration Injustice Repeal (FAIR) Act.” The letter argues that the bill, which would effectively ban arbitration provisions in private contracts, would not benefit claimants but instead lead to more class action lawsuits, primarily benefiting class action lawyers rather than consumers, employees, or small businesses.
The signatories emphasize that pre-dispute arbitration clauses have long provided a fair, efficient, and cost-effective means of resolving disputes, with studies showing that employees and consumers often fare better in arbitration than in litigation. They also note that courts already ensure arbitration agreements are fair and do not favor any party, and that eliminating arbitration would leave many individuals without practical remedies for small claims.
The letter is signed by a wide range of national and state-level organizations, including major business, banking, insurance, and industry associations from across the country. The coalition contends that the only clear beneficiaries of the FAIR Act would be class action attorneys, while consumers, small businesses, and employees would face greater barriers to resolving disputes.
