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.