It’s meant for B2B lawsuits, so they can both avoid extra litigation costs. They forced it onto consumers because they wanted to win more. They get to choose their arbitrator and avoid more public cases.

There has been some push back in recent years. This article by Consumer Reports shows some ways as to how people have been fighting back.

It’s a perversion of justice because of how its used to oppress people, that’s for sure. The last two places I rented had mandatory binding arbitration by an entity of the Landlord’s choosing, and in practice that means you’re completely at the legal mercy and whim of someone else.

It might as well read that I agree to sign away all my rights, and yet, people need a place to live. What choice do we have?

It doesn’t completely bypass the courts. Arbitrators don’t have the authority to enforce anything by themselves.

After both sides present their case, an arbitrator will write an opinion. That opinion must still be sent to an actual judge who checks it for errors and who has to take responsibility for enforcing it. Though it’s rare, judges have on occasion thrown out the arbitrator’s opinion.