Companies are increasingly using arbitral class action prohibitions to insulate themselves from class action liability. These prohibitions are detrimental not only to potential class members but to the public at large in that they are preventing the law from being adequately enforced. In essence, by precluding class actions, companies are engaging in "do-it-yourself tort reform," freeing themselves from liability without having to convince legislatures to change the substantive law.
Jean R. Sternlight & Elizabeth J. Jensen,
Using Arbitration to Eliminate Consumer Class Actions: Efficient Business Practice or Unconscionable Abuse?,
67 Law and Contemporary Problems
Available at: http://scholarship.law.duke.edu/lcp/vol67/iss1/4