Consumer advocates say they dislike the sneakiness involved, from the arbitration clauses many consumers do not realize they signed, to the system of private negotiations which hamper class action suits. They argue the system is stacked against the consumer.
"Arbitration providers know the companies are repeat customers, so they have an economic incentive to rule in favor of the company," said Stephanie Hines of Public Citizen, a non-profit consumer rights advocacy group.
"There is no judicial review, so even if the arbitrator makes a completely whacky ruling of law you can't go to a court and do an appeal of it," Bland said. "One of the things that happen a lot in forced arbitration is that the consumer ends up having to pay the company's attorney's fees, which is something that almost never happens in the court system."
Chad Husby, a Local 10 News viewer and South Florida botanist, had an issue with a car he purchased from Miami Auto Wholesale. Husby did not realize his contract with the dealership included an arbitration cause.
"Not all of us can become versed in this area of law. I mean, I don't think we should be," Husby said. "I was kind of horrified at what I learned about arbitration."
"The people who end up being arbitrators are almost always lawyers who work for the same type of company that you're suing," Bland said. "Instead of having a jury decide your case against a car dealer, the people who decide the case are going to end up being lawyers for other car dealers."
Husby filed a complaint against Miami Auto Wholesale and Export and BMW Financial services. In November, the arbitrator denied his claims and ordered Husby to pay for the dealership's attorney fees totaling more than $20,000, which Husby's lawyer Dana Manner pointed out is more than the price of the car.