Retailer tries to hold customer’s money hostage to forced arbitration

By Trevor Boeckmann
AFJ Dorot Fellow
As we detail in our short documentary Lost in the Fine Print, forced arbitration clauses have become omnipresent in American society.  They’re used by companies to prevent consumers from having the chance to stand up for their rights in court when they’re harmed.  Yet most of these clauses are buried deep in the fine print of contracts and terms of service.

Now Walmart, already a corporate bad actor in so many ways, has taken this strategy to a whole new level.  They found a way to hold a customer’s money hostage until she agreed to forced arbitration.

KTRK-TV in Houston reports that on Black Friday, local shopper Maria Selva tried to buy a new TV at the big-box retailer. Walmart had sold out of the TV by the time Selva came to purchase it, but employees gave her a coupon, and had her pay in full.

She thought she could just pick up the TV at a later date.  But after she’d already paid, she was given a notice telling her she had to register online.  When she went online, she found that registering the coupon meant agreeing to forced arbitration.  She refused to accept the terms, and contacted Walmart to ask for a refund.

Walmart said no.

Instead, the company told her she would have to agree to forced arbitration, receive the TV, and return the TV.  Only then could she receive a refund.

It wasn’t until KTRK contacted the company that Walmart finally relented and issued a refund.

The consequences of forced arbitration can be great.  In Lost in the Fine Print we document the stories of Nicole Mitchell and Debbie Brenner, victims of discrimination and fraud who were never allowed to defend their rights in court.

Walmart isn’t the only company that has tried to find creative ways to impose forced arbitration.

Take General Mills, for example.  Last spring, we told you about their new arbitration policy, which purported to force consumers into arbitration if they entered a company contest, printed a General Mills coupon, or even “liked” Cheerios on Facebook.

But public pressure forced General Mills to back down.  Now we’re putting the pressure on other companies.  Join our campaign to end forced arbitration and protect everyday Americans.

Watch one consumer’s battle against Walmart and forced arbitration

While we’re giving thanks tomorrow …

...let’s take a moment to think about the workers at Walmart who will be out on a picket line on Friday  - or forced to work on Thanksgiving night – while we enjoy our time with friends and family.  AFJ’s Bolder Advocacy Blog has been spotlighting the campaign for justice at Walmart.  Check out these two recent posts.  This one offers and overview of the campaign, and how all of us can help:

Black Friday Protests at Walmart

This Friday, the nation’s biggest shopping day, thousands of Americans will be calling on Walmart to improve working conditions at its stores and warehouses. The Black Friday day of action is the culmination of a wave of worker activism that started in October with an historic walkout in Los Angeles.

As the recent recession accelerated the growth of the part-time economy, the opposition to Walmart’s practices takes on renewed relevance. Walmart sets an industry standard by creating part-time positions with low wages, unaffordable benefits, erratic scheduling, and unsafe workplaces.

Read the full post here

And there’s more about the campaign in this guest blog from Erica Smiley, Campaigns Director for Jobs with Justice and American Rights at Work

Walmart Can Change Its Ways — if We Make Them

Good jobs are the cornerstone of a strong, healthy economy.  A good job is one where workers have collective bargaining rights, employment security, and wages and benefits that allow their families to enjoy a decent standard of living.  Thus, organizing to transform the economy means organizing to transform work into permanent, secure jobs where workers have dignity and respect.

Read the full post here

The many complaints against Walmart include widespread discrimination against women.  The current protests are needed in part because the Supreme Court failed the women of Walmart when they ruled against them in a class-action suit.  The Walmart case is among those featured in AFJ’s documentary Unequal Justice: The Relentless Rise of the 1% Court.

On Tuesday, Sarita Gupta, executive director of Jobs with Justice and American Rights at Work will discuss the Walmart campaign at the formal premiere of Unequal Justice in Washington.  She’ll be part of a panel that also includes AFJ President Nan Aron, Pam Gilbert, former executive director of the U.S. Consumer Product Safety Commission and Linda Lipsen, CEO of the American Association for Justice.  The event is free, and there’s still time to register here.