The CFPB’s arbitration rule video: education or lobbying?

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In a new video posted on its website entitled “CFPB’s New Arbitration Rule: Take Action Together,” the CFPB tells consumers that arbitration agreements prevent them from joining together to hold companies accountable for consume harm and that the CFPB’s new rule “will ensure people who are harmed together can take action together.”

The CFPB would undoubtedly describe the video as an effort to educate consumers about how (in the CFPB’s view) they are harmed by arbitration agreements and will benefit from the arbitration rule.  (It deserves mention that while the CFPB has  expended funds to create a video critical of arbitration, it has been unwilling to expend any funds to educate consumers about the many benefits that arbitration can offer as opposed to litigation.)

While the CFPB may characterize its video as educational, it is also possible that the video represents the opening salvo in CFPB efforts to mobilize consumers to lobby their representatives in Congress to vote against a Congressional Review Act resolution disapproving the arbitration rule.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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