Approximately four in every 10 companies use class action waivers in their contracts, according to the 2023 Carlton Fields Class Action Survey. Although these waivers can be a strong risk management tool, 57% of companies omit class action waivers for reasons that include perceived regulatory resistance or other barriers in some jurisdictions.

Here is what some corporate counsel had to say about why they use class action waivers:

“Yes, we don’t want them to be able to file class actions. They should have to arbitrate on their own merit as individuals.” -Director of Litigation, Fortune 500 Retail Company

“Yes, it’s the historical practice of the company to streamline the process, drive down costs, and keep issues as confidential as possible.” -Assistant General Counsel & Global Disputes Lead, Large Global Manufacturer

“No, we never looked at using these because there are some regulatory blockades and some court findings that concluded these waivers were not permissible in some jurisdictions.” -Senior Vice President, Consumer Products, Global Financial Services Company

“No, we have looked at it, but it would require a significant amendment to our products like including detailed manuals to go with our products. We have thousands of products so that would be very complex.” -Chief Global Litigation Counsel, Prominent Consumer Goods Manufacturer

“No, but this may change in the future. We are looking at this currently based on what our competitors do. Most of them use mandatory arbitration provisions and mandatory class action waivers.” -Senior Corporate Litigation Counsel, Large Regional Energy Company