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A class action waiver is a provision found in some contracts which prohibits a party from filing a class action legal proceeding against the other party, or both parties waiving the right to file class actions against each other. Though used internationally, class action waivers, just like class action lawsuits, are predominantly an American phenomenon and most frequently both found and upheld in the United States and agreements with American citizens.[1]
Class action waivers may be found on a standalone basis, though they are more commonly found as part of an arbitration clause, and when paired with such clauses, frequently include jury trial waivers.[2] All three clauses are the subject to controversy and wide legal debate, with supporters claiming the tools are strong risk management tools and the expense that class action litigation presents both in regard to time and money, though advocacy groups argue that these clauses reduce the rights of consumers and employees and prevent companies from being held accountable for grievances such as wage and hour violations.[3][4]
Class action waivers legality across countries and administrative decisions range in legality between jurisdictions, with some countries like France and administrative divisions like Ontario in Canada banning such clauses, while others, most prominently the United States via its Supreme Court ruling in AT&T Mobility LLC v. Concepcion, have rules that such clauses are enforceable.
- ^ Dreyer, Frances; Briggs, Nicholas; Locket, Scott (September 2021). "Contracting out of class actions? Federal Court says no in an Australian first". Johnson Winter Slattery. Retrieved 2023-12-25.
- ^ "The use and enforceability of class action waivers in arbitration agreements in the United States". Practical Law. Retrieved 2022-08-24.
- ^ "Are Arbitration Agreements Necessary for Class-Action Waivers To Be Enforceable?". The Florida Bar. Retrieved 2022-08-24.
- ^ "Preparing for the COVID-19 class action: Is there an unexpected consequence lurking in your arbitration agreement's poison pill provision? | Insights". DLA Piper. Retrieved 2022-08-24.