U.S. Supreme Court will decide fate of class-action consumer suits in AT&T v. Concepcion

The U.S. Supreme Court, which hasn’t had the best year when it comes to looking out for the rights of average citizens, heard arguments this morning in another case that has huge implications for everyone reading this post. The case, AT&T Mobility v. Concepcion, puts the rights of consumers to band together in class-action lawsuits at risk. If the court rules in favor of AT&T, corporations could put clauses in their consumer contracts prohibiting class-actions. David Lazarus wrote about the potential fallout in a recent L.A. Times column:

Consumer advocates say that without the threat of class-action lawsuits, many businesses would be free to engage in unfair or deceptive practices. Few people would litigate on their own to resolve a case involving, say, a hundred bucks.

“The marketplace is fairer for consumers and workers because there’s a deterrent out there,” said Deepak Gupta, an attorney for the advocacy group Public Citizen who will argue on consumers’ behalf before the Supreme Court on Tuesday.

“Companies are afraid of class actions,” he said. “This helps keep them honest.”