Mandatory arbitration is when a case is resolved outside of the courts and without a jury by an arbitrator that may or may not have significant legal experience and also can be biased. This has become a problem in certain scenarios. Major companies have used mandatory arbitration contracts to avoid class action suits.
Mandatory arbitration as we know it is on the way out. The Consumer Financial Protection Bureau on Wednesday announced that it plans to propose rules that would prevent consumer financial services companies from using arbitration clauses to block class actions. The implications are huge.