eBay, the billion-dollar online auction company, has been hit with the second largest data breach in history, with more than 145 million users affected, the New York Times reported on Thursday. Although eBay insists that users’ financial information is safe, it confirmed that hackers were able to steal personal information including names, birth dates, email addresses, and passwords which could be used for identity theft.
Unfortunately, victims may find that they cannot hold the tech giant accountable in court because of a forced arbitration clause buried in eBay's terms of service.
Tech companies like eBay use forced arbitration clauses to evade privacy laws because they allow the company to kick violated users out of court and instead funnel them into a rigged forum run by an arbitrator selected by the company. This arbitrator is not required to have any legal training and does not even have to follow the law.