Class Actions: Waiving your rights!

Implications: Companies that have in essence contracts of adhesion may be able contractually set up a waiver of class action status? If this type of waiver is allowed do your rights to sue really exist?

Analysis: Companies have for a long time been very innovative and creative in the drafting of their contracts of adhesion.  While a consumer certainly has the right not to sign, do they really realize the magnitude of what they are signing or in essence giving up.  Companies are of the mindset that consumers can still pursue arbitration and individual suits, but is this really just illusory?  If in reality statistics show very few can afford to pursue their legal remedies are they really left with anything.  Even with the settlements of many class actions people are left with awards, discounts or redemptions that practically speaking they will never be in a position to use.  If the courts are going to allow companies to bind consumers to a waiver of class action status, then at the very least it should be in simpler language and made more conspicuous. Unfortunately, we may be left with the old adage, "caveat emptor" or Let the buyer be beware.  While it appears appropriate to place the onus on the one signing the contract to know what they are signing, these type of take it or leave it agreements may be a good example of what some feel should be against public policy.  Will this spell the end of many consumers rights or the beginning of what some may say as a procedural immunity.  Class Actions, although some are clearly frivolous, have been a way of policing large companies, or more plainly said a good way of maintaining checks and balances.  For more on this possible waiver see  http://www.naca.net/News-Events/News.aspx?item=43481 , http://www.goingcellular.com/consumer-issues/class-action-against-att-may-move-forward-44194/.