In recent Supreme Court cases addressing the validity of class action waivers in arbitration agreements, arbitration nominally won the battle. But it lost the war. In 2011, in AT&T Mobility LLC v. Concepcion, the Supreme Court held that the Federal Arbitration Act preempted a California state rule that prohibited companies from including an arbitration clause with a class action waiver in their customer contracts.1 Two years later, in American Express v. Italian Colors Restaurant, the Court held that a class action waiver in an arbitration agreement does not prevent consumers from enjoying “effective vindication” of their legal rights under federal antitrust law, and therefore is enforceable under the FAA.
Adam Raviv, Too Darn Bad: How the Supreme Court's Class Arbitration Jurisprudence Has Undermined Arbitration, 6 Y.B. Arb. & Mediation 220 (2014).