Coloradans share the nightmare experience of being unfairly disempowered by big corporations through forced arbitration and unfair legal terms. Many think forced arbitration clauses and unfair terms are rare but they are found in the fine print of contracts for virtually everything, including nursing homes, childcare, employment, car and student loans, and cell phone agreements. This is why we have sponsored Senate Bill 93 – the Consumer and Employee Dispute Resolution Fairness Act – a bill that will give Coloradans an ethical, fair and transparent process when challenging corporate wrongdoing.

Countless numbers of consumers and employees are forced to bring complaints of arbitration in front of a private arbitrator instead of a judge or jury; unlike court decisions, arbitration may not be appealed. This means that when products or services fail or cause harm in some way, it’s extremely difficult for consumers and employees to hold corporations responsible for the wrongdoing. Corporations write forced arbitration clauses into contracts presented to a worker or consumer in a “take it or leave it” contract for a service, product or a job, and consumers must effectively opt out of the marketplace or job market in order to keep their basic right to a day in court.

A resident in Boulder encountered these fine print clauses when her health insurance company tried to hide its refusal to cover her broken jaw surgeries, despite her policy specifically covering accident-related injuries. A veteran, mom of two, and college student from Parker had her career and financial stability derailed when her private nursing college expelled her for a mildly-critical online review, also refusing to refund a penny of her tuition. Another 64,000 Coloradans fell victim to Wells Fargo’s scheme to open unauthorized accounts, charging many a fee for those fake accounts.

Examples of forced arbitration also include numerous cases of sexual harassment. In the wake of the #MeToo movement, women feel empowered to come forward with their cases of sexual assault and harassment in the workplace, but many have already renounced their right to a day in court without realizing it. One of the most well-known examples is former Fox News host Gretchen Carlson’s case against Fox Chairman and CEO Roger Ailes. These unfair legal terms provide corporations the ability to hide a pervasive culture of sexual harassment at the workplace.

While arbitration was designed to be a process in which two equally powerful parties could resolve disputes, it is now used by corporations to stack the deck against everyday folks. The problems inherent in arbitration for consumers and employees include:

? Possible Bias. There are few ethical standards for arbitrators like judges, making it possible for arbitrators to have conflicts of interest (even though some have adopted their own rules).

? Secrecy. There are no public records of arbitration, so it’s impossible for consumers to research patterns of bad behavior that could help hold corporations responsible for wrongdoing.

? Unfair Terms. When consumers have little to no input in drafting contracts, corporations often load them with terms aimed at deterring consumers or employees from bringing claims forward.

Senate Bill 93, the Consumer and Employee Dispute Resolution Fairness Act, will ensure that each Coloradan is provided a fair and transparent process in the chance that they may need to challenge corporate wrongdoing. If passed, it will level the playing field by establishing:

? Ethical Standards. Defined ethical standards will assure that arbitrators will conduct proceedings without prejudice, bias, or harassment because they will be required to disclose family, social, political, financial, or other interests or relationships that could influence their conduct or judgment.

? Disclosures: Consumers and employees who are going into forced arbitration will be able to learn whether a corporation has a history of similar wrongdoing through disclosure of information about the arbitration services providers.

? Unenforceable Unfair Terms. Corporations frequently insert unfair terms to discourage claims made against them, such as requiring travel out of state for arbitration proceedings, or that one part unilaterally may select the arbitrator. Senate Bill 93 would make this practice unenforceable.

Colorado consumers and employees deserve a fair shake when holding corporations responsible for substandard services, faulty products, or hostile work environments. We urge our elected colleagues to vote yes on Senate Bill 93.

Senate Majority Leader Steve Fenberg and state Sen. Mike Foote represent Boulder County.