The idea is that arbitration makes it easier for consumers to resolve disputes because it can be simpler and faster than going to court. In practice though, it’s incredibly consumer hostile and typically only benefits the company – that gets to pick the arbitrator, and where arbitrators will typically side with the company that employs them.
Despite this, the Supreme Court has upheld the Federal Arbitration Act or 1925 on numerous times overturning state’s rights.
This particularly dispute was particularly insidious as it allowed business to not only require individual mandatory arbitration, but also to prevent class action lawsuits:
