Rep. Johnson, Sen. Blumenthal Introduce Legislation to End Forced Arbitration and Restore Accountability for Consumers, Workers

Statement

Today, U.S. Rep. Hank Johnson (D-GA) and U.S. Sen. Richard Blumenthal (D-CT) introduced the FAIR Act: The Forced Arbitration Injustice Repeal Act, which would increase Americans' rights to seek justice and accountability through the court system.

The House bill -- H.R. 1423 -- would eliminate forced arbitration clauses in employment, consumer, and civil rights cases, and would allow consumers and workers to agree to arbitration after a dispute occurs. The House bill has 147 cosponsors. Sen. Blumenthal (D-CT) introduced the companion bill in the Senate, which has 34 cosponsors.

Rep. Johnson announced the bill at a news conference on Capitol Hill with Sen. Blumenthal (CT), Judiciary Chairman Rep. Jerrold Nadler (NY), Chairman of the House Antitrust Subcommittee Rep. David Cicilline (RI), Chairman of the Committee on Education and Labor Rep. Bobby Scott (VA), Rep. Cheri Bustos (IL), former Fox News Anchor Gretchen Carlson, members of the American Association for Justice, Public Citizen and victims of arbitration rulings.

"Forced arbitration agreements undermine our indelible Constitutional right to trial by jury, benefiting powerful businesses at the expense of American consumers and workers," said Rep. Johnson, chair of the Judiciary Subcommittee on Court, Intellectual Property and the Internet. "Americans with few choices in the marketplace may unknowingly cede their rights when they enter contracts to buy a home or a cell phone, place a loved one in a nursing home, or start a new job. We must fight to defend our rights and re-empower consumers."

"There is a lot of use of the phrase "rigged system' these days," Sen. Blumenthal said. "One of the systems that is truly rigged against consumers, workers, and the American people is our current system of forced arbitration. Forced arbitration is unfair, unjust, and un-American. One of the fundamental principles of our American democracy is that everyone gets their day in court. Forced arbitration deprives Americans of that basic right. This kind of injustice has to end. The Forced Arbitration Injustice Repeal Act is a measure whose time has come."

"I am proud to join Senator Blumenthal and Congressman Johnson as an original cosponsor of the Forced Arbitration Injustice Repeal Act, or the FAIR Act, which would end the use of forced arbitration in consumer, employment, civil rights, and antitrust disputes," said Judiciary Chairman Jerrold Nadler. "Victims of sexual assault, racial discrimination, and other forms of corporate abuse and misconduct deserve their day in court. As the Chairman of the House Judiciary Committee, I will not rest until we have fully restored these rights by passing historic legislation to end forced arbitration."

"The men and women who serve our country in uniform deserve nothing but the best," said Congressman David Cicilline, who also introduced a separate bill on forced arbitration -- the Justice for Servicemembers Act. "For all the sacrifices they make overseas, they shouldn't worry about whether they'll have a job when they come home. I'm proud to be introducing this bill today to protect their legal rights. I hope Congress will move swiftly to do right by our brave men and women."

"Forced arbitration clauses buried in the fine print hurt everyone," said Linda Lipsen, CEO of the American Association for Justice. "If corporations know they won't ever be held publicly responsible, our civil rights, as well as our public health and safety are at risk, from the cars we drive, to the jobs we take, and the food we eat. That's what makes this legislation so important, and I commend the advocates and Members of Congress who stood up today to demand action."

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