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.
Consumer complaints dropped at arbitration
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