Consumer complaints dropped at arbitration

by Reily Gregson

WASHINGTON—A new report claims the costs of arbitration—billed as a low-cost alternative to lawsuits and required in service contracts for mobile phones and other electronic contracts—are so expensive that consumers drop complaints. Public Citizen, a consumer advocacy group, said arbitrators tend to favor businesses and arbitration awards tend to be much lower than jury verdicts. Arbitration clauses have been upheld by the U.S. Supreme Court.