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If the ToS requires you to waive your right to sue in exchange for binding arbitration, you can't even sue, you instead have to go to a private judge chosen by the party that wronged you.

There is no conflict of interest there.

I am curious to discover more about such scenarios. My understanding was that they generally use American Arbitrator's Association and do not have a say on what kind of arbitrator gets assigned to them.

This doesn't help when the entire arbitration system is biased towards corporations. They are the ones providing them with repeat business.

The proceedings are secret, the rules of arbitration are arbitrary and capricious, and you have no legal recourse if you run into bias, favoritism, conflict of interest, grotesque and willful misinterpretation of the law, or just plain old injustice.

If you actually want a low-cost, low-friction way to fairly resolve simple disputes, we already have such a system. It's called small claims court. Arbitration takes the scales of justice, and puts a pound of flesh on one side of the scale.

There's still a conflict of interest there - arbitration will only continue to be used if it provides a more favourable outcome than going to the courts.

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