> Mandatory binding arbitration will still be an issue.
No, because consumer laws can outlaw forced arbitration. They usually trump any contract law, so even consumers that agree to arbitration may not be required to go through with it.
For example, in Germany, any arbitration agreements must be separate from the sale/service contract with consumers[0]: "Yet, arbitration agreements with consumers require that stricter formalities be observed: such arbitration agreements must be signed by both parties separately from the main contract to which they relate (section 1031(5) ZPO)". You cannot bake one into the contract to which it relates. The seller may insist the customer signs an arbitration contract, but the sale contract cannot be conditional on agreeing to arbitration, so the arbitration becomes optional rather than forced.
Of course, I understand many countries do not have such strong consumer protection around forced arbitration. This is why more consumer protection is needed.
No, because consumer laws can outlaw forced arbitration. They usually trump any contract law, so even consumers that agree to arbitration may not be required to go through with it.
For example, in Germany, any arbitration agreements must be separate from the sale/service contract with consumers[0]: "Yet, arbitration agreements with consumers require that stricter formalities be observed: such arbitration agreements must be signed by both parties separately from the main contract to which they relate (section 1031(5) ZPO)". You cannot bake one into the contract to which it relates. The seller may insist the customer signs an arbitration contract, but the sale contract cannot be conditional on agreeing to arbitration, so the arbitration becomes optional rather than forced.
Of course, I understand many countries do not have such strong consumer protection around forced arbitration. This is why more consumer protection is needed.
https://globalarbitrationreview.com/insight/know-how/commerc...