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The Role of Mandatory Arbitration in Consumer Protection
In addition to authorizing enforcement by attorneys general most UDAP statutes also allowed private and class action litigation against marketplace behavior that is potentially "unfair and deceptive."
The United State Supreme Court essentially eliminated private consumer class actions in ATT Mobility v. Concepcion, S. Ct. 1740 (2011) by allowing merchants to force consumers to agree to private arbitration prior to sale.
The Court did not allow arbitration fo block attorney general actions thereby driving private class actions toward attorneys general. Hood Ex. Rel Attorney General of Mississippi v. A.U. Opttomics, et. al. 134 S. Ct. 736 (2014).
The issues arising from retention of private counsel - especilly contingent counsel - are covered in more detail in Chapter 6.
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