A Boring Dystopia

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Chat is this real (lemmy.dbzer0.com)

submitted 2 months ago by [email protected] to c/[email protected]

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[–] explodicle 3 points 2 months ago (1 children)

I think we should be allowed to opt in to arbitration from within the public judicial system, once charges have already been brought forward. Then people will only agree to it when it's legit just saving time/money, and won't change the likely ruling.

A public system designed for everyone can never be as cheap as one specific to the issue/people at hand. It just needs to always be available as a fallback.

[–] [email protected] 5 points 2 months ago (1 children)

I think what you are mentioning is basically how settlements work.

I just can’t see how an arbitration company that is selected by a company will ever have the incentives to side with consumers.

I can only see arbitration working when both sides have equal leverage. Large company vs large company, citizen vs citizen. And both sides must have a say on which arbitration company is selected.

[–] explodicle 1 points 2 months ago

What I'm mentioning will frequently lead to settlements, but the choice of whether or not to use arbitration is typically made before there's any case.

Both sides don't have equal leverage today because of an information asymmetry market failure. The cost to the consumer to read the ToS (and research its arbitrators) for everything they buy is unreasonably high, while it costs the company very little. If consumers only had to research arbitrators after the fact, then the company would have a strong incentive to agree to a fair one, avoiding the public courts.