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Class Action Survey: Corporate Counsel Report Big Changes in Use of Arbitration Clauses
February 19, 2020

After the repeal of the Consumer Financial Protection Bureau’s rule banning the use of class action waivers in certain arbitration agreements, the percentage of companies using such waivers increased to 37.2% in 2017. As expected, the use of arbitration clauses increased in 2018, and the percentage of companies that included class action waivers in their arbitration clauses increased to nearly 50%. More companies now use arbitration clauses that bar class actions than in any prior year of the Carlton Fields Class Action Survey. Overall, 63.3% of companies report using arbitration clauses in their contracts, up from 51.2% in 2017. Companies report that their decision about whether to use arbitration clauses in their contracts is based on a variety of factors, with the containment of litigation costs cited most often.
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