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>The consumers have no choice here

For the choices that matter to the arbitration firm, they absolutely do. Without a customer who is willing to initiate arbitration proceedings, there are no fees to be collected.

If there is a huge upfront financial burden to the customers, the customers are much more likely to just drop the whole matter. And while the businesses would absolutely consider consumers not pursuing grievances to be a win, the arbitration firm does have an incentive to actually have there be some arbitration.



D'oh, I feel dumb for missing this. Thanks!


Don’t. My train of thought went in the same direction, and I was enlightened by this explanation as well.


Thanks! Glad you found it helpful.




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