at&t new rules,is this legal?

[thread-bear]

I just received a pamphlet from at&t stating that if I didn't cancel my phone service with them in a short period of time,I would have little rights to sue them,just arbitration. I'm guessing they're worried about invasion of privacy lawsuits. Is this legal? What phone companies didn't sell the country out with illegal wiretapping?

[marybourg]

1. Yes this is legal, but there is a movement gathering steam

to outlaw it. Your bank, credit card, employer and many others have found a way to dodge our judicial system with the help of the "tort reform" industry and the republiban.

[Ms. Toad]

2. If it didn't specifically say the arbitration rules were new

I would be very surprised if they are. (The pamphlet may include both new and old provisions.) Arbitration clauses are pretty standard. Spend a little time reading software licenses, credit card agreements, rental car agreements, etc. before you click/sign them. You would be amazed.

Edited to add: Sometimes even if you sign them you still have legal options by claiming it was an adhesion contract (basically you had no opportunity to negotiate it and had to sign it as is - sometimes works in David and Goliath cases)

[imdjh]

3. As I understand it, the problem with arbitration is that the customer has to pay for it.

Would that be correct? Thus no one goes after the corporation, because no one except the corporation can afford to do it.

[Ms. Toad]

5. Depends on the what the contract says.

It is relatively common to split the bill.

A bigger problem is that they typically select American Arbitration Association as the arbitration firm (AAA invests heavily in the stocks of many of the companies it arbitrates disputes for - so bias is an issue). In addition, when Company A selects a particular arbitration firm they often have a contract for arbitration with that arbitration firm - so Company A provides a steady stream of income, whereas the opposing party (in this case you) would be a one time client. Again, bias is an issue.

[kenny blankenship]

4. Even if it was illegal, they could count on their dutiful servants in Congress to make it legal

retroactively.

Just forget "legal" when discussing AT&T or any of the big money center banks or insurance underwriters.
The concept has pretty much lost any durable meaning.