T-Mobile early-termination fee lawsuit moves forward because mandatory binding arbitration clause unconscionable
Following on this post, Wired reports that T-Mobile failed in its efforts to compel the plaintiff to participate in binding arbitration rather than litigate his claims as a class action in court.
Mandatory binding arbitration in cases like this is cheaper for corporations and prohibitively expensive for consumers, especially when the damages at stake are so low. California’s decision is a hopeful one for consumers in this case as well as in other cases where corporations use mandatory binding arbitration to attempt to avoid responsibility to the public at large for unfair policies.
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