Slack's New Arbitration Policy
konklone.com
konklone.com
Disallowing class action is absolutely in-favor of Slack and companies in general. Class action suits are a powerful pro-consumer force. They allow consumers to seek redress without cost - as the legal costs are paid for by the plaintiffs attorneys. Sometime consumers don't get much out of these suits while the attorneys make a lot. But their threat is a strong check on powerful companies.
Forcing arbitration is a murkier matter. The first google result on arbitration vs trial (http://www.nolo.com/legal-encyclopedia/arbitration-pros-cons...) provides a decent analysis. Frequently arbitration is less expensive for both sides because the process is simplified. You also avoid shenanigans like fighting for 6 months about jurisdiction and venue (which either side can do to seek a more favorable court).
The article states that arbitration is bad because consumers don't have legal representation. This is flat out wrong. Consumers can and should have legal representation in an arbitration. Just like in a trial, consumers need to pay for this legal representation themselves, and it would be foolish not to have it.
The article also says that arbitration is bad because companies have more legal resources than consumers. This is a fallacious argument. Companies will also have more legal resources in a trial. If anything, the simplified process of arbitration makes this less of an advantage. So arbitration may be slightly better for consumers in that respect.
Keep in mind that Slack is a B2B service, though; its clients are companies, not individuals. Would a class-action suit really make sense here, given that most of the "consumers" involved should already have access to legal representation?
> companies can harm large groups of customers but get away with only paying out to those people who are willing to arbitrate.
Class action isn't just about big guy vs little guy, or corporation vs individual. It's also about discouraging practices that are illegal, and valuable in aggregate for the defendant, but too small to warrant a court case for any single plaintiff.
Class actions really exist for economy of justice, particularly with diffuse harms across a large group (regardless of the resources of the individual members of the group), not specifically to deal with access-to-counsel issues.
Any time the number of similarly situated parties (customers, in this case) is large on one side, its conceivable that a class action makes sense.
This is "pro-consumer" only in that in that it addresses an essential asymmetry of resources-at-stake that disfavors action by the "many" side in any many to one transaction. "Consumers" are an example of this, but not a unique example.
Definitely. Their low-end plans are relatively cheap. That means that even if you have legal representation, it often wouldn't be worth suing them. But a class action spreads the legal cost across many plaintiffs.
Simple example. Suppose BadCo has 10,000 customers who each pay $1000 per year, for annual revenues of $10m. If they can cheat each customer out of an additional $100 (say by overbilling), then they'll make $1m, which is enough money to be tempting. But very few people will go to the time and trouble of a lawsuit just to get $100 back. But a class action lawyer might happily take the suit thinking they could make 25% of that million.
Source: I'm an ex aequo et bono arbitrator.
EDIT: I have to be missing something. Half the comments here talk about arbitration, but that word doesn't appear once in the blog post. Was it edited?
https://konklone.com/post/slack-is-now-forcing-users-into-ar...
You as a jurist might look at this and go "meh, it's fine", but if you're the CEO of a small company this sort of thing really fucks with you.
their CEO gave his ideas on this situation:
https://twitter.com/stewart/status/537007282811195392?t=1&cn...
> don't know what you're smoking,
Silver Skunk, actually. :)As to the law in California, which Slack chose, I'll just take from page 12 of Contracts: Examples And Explanations (Fourth Edition), a book I got in first-year:
"It would be remiss not to at least draw to your attention that courts do not mechanically apply rules of law. Judges and juries are sensitive to the equities of individual cases and the circumstance of the parties, and where a mechanical application of rules achieves a result that seems to be unjust, there is likely to be some adjustment or even manipulation of the rule to avoid it."
So, with the above in mind, let's say that, while they really want the governing law to be based in California, if one party decides to keep this contract squarely governed within Article 33 of the United Nations Commission on International Trade Law's Arbitration Rules (after all, isn't California law in harmony with international law?), then the court would necessarily understand why filing in California, or even only recognizing the limited rights that exist in California law, might not be prudent in all circumstances.
I'm curious as to what types of contracts it doesn't apply to, and what states it doesn't apply in. As you mentioned they exist, perhaps you can let me know which contracts and which states you were talking about?
I wish I could send this thread to dang, as an example of the hivemind that HN metamoderation needs to address.
I'm not a lawyer, this is not legal advice, don't take legal advice from unknown Internet people, and all that.
I hear what this guy is saying. However, having been in three lawsuits, one of which I initiated, I would do the same thing as Slack. I would generally try to do anything reasonable I could to avoid a lawsuit.
Arbitration or mediation (very different things) is almost always required anyways, by the courts, if you file a lawsuit. They make you try. At least they try to force a mediator.
If you force arbitration, it's the same thing as forcing a lawsuit and would result in my immediate desire to resolve your issue without continued legal maneuvers.
Anecdotally, and as I think most litigation attorneys would tell you -- People settle lawsuits because they are either out of time, or money. They almost never settle because they think they've lost the case. The merits of the case rarely matter once you are knee-deep in the litigation, but the toll a lawsuit takes does factor into a settlement decision quite often.
On Slack, from what they describe, the feature is only available with a certain type of account, you can only export logs in bulk (i.e. it's not something easy to do, it has been made for a specific purpose), and employees will be notified if the feature is enabled/used.
Next off, you are owed NO privacy on services that your company is paying for for interoffice communication. You never have been. The fact that people bitched and moaned over Hipchat allowing history to be viewed is just ignorant and stupid.
You know why managers have the ability to view these things? Harassment. Sexual, physical, altercations, etc. If your company has more than 5 people these things WILL come up and the INABILITY to retrieve this data is BAD.
We have ALWAYS been able to retrieve this data via XMPP (Openfire), MSOffice Communicator/Lync, etc.
This is NOT some mind blowing new development.
I'm also irritated by the mindset that considers this kind of institutionalized snooping a good thing ("INABILITY to retrieve this data is BAD").
That did NOT mean that I was actively viewing everything and sitting in a tower somewhere cackling at all of the deep dirty news I had. I had to pull data a handful of times during lawsuits or sexual harassment complaints.
You should not be delving into deep personal/sexual conversations on any work tool without having in the back of your mind that it may come up at some point, whether you're at a startup or not. I'm on my 3rd startup and while I know nobody has been monitoring (because I pay for the tools) I still keep the tools somewhat professional. To the point that I couldn't care less if someone looked into my conversations. If we're going to bitch about that, then the fact that my data is on some unknown server at Hipchat is FAR more worrisome to me than my COO looking at my conversations.
You SHOULD trust your employees and if you don't trust one replace them. You should also TRUST your management to not spy on you. But you should also assume that they have the ability, if not, you're daft.
Also legally speaking, a company is not allowed to listen in on/record phone calls I make on a company phone and I doubt they are allowed to open snail mail addressed to me. Thus my expectations of privacy is not something inconsistent with the status quo.
I'm going to assume that's purely state based, but it definitely is legal in some jurisdictions. I'd imagine moreso than not.
I agree that I don't want to work somewhere where you're monitored. I think we'll all agree to that.
But I've actually saved someones skin before by providing logs when a sexual harassment lawsuit came up and an employee was fired unjustly (manager fired them, but his advances were blatant in the logs).
It protects the employee if you use the communications properly.
Pity. It's a good service.
(kind of hilariously, the arbitration provisions are not well drafted and are almost certainly unenforceable.)
- please trust us with your data
- you have no recourse if we do screw up thoughI don't fully understand the context. Can you explain the arbitration clause they are forcing?
Edit: Found this, also on the front page right now: https://konklone.com/post/slack-is-now-forcing-users-into-ar...
The US court system is very slow, and requires significant resources in terms of lawyers that are not required with arbitration.
This should also be to the benefit of individuals as well, as the bar for suing a company as a consumer is much higher than picking a mutually agreed arbiter and getting the case heard.
IF the clause is fair (e.g.: mutually agreed arbiter certified by a national arbiter certification organization) then I tend to see these clauses as consumer friendly.
In practice the arbiters that do not side with the companies are not chosen again in the future.
They could charge customers a fee for settling "in favor of", or settle based on their membership time or random dice, and it would still be enforceable in court.
Note that my business is located in France so a US arbitrator could have a national preference for arbitraging in favor of a US citizen, and there would be nothing illegal in that.
Would you prefer to run a company that maintains a retainer for quality legal counsel in every nation (and potentially every state/province) where a user purchases your software? Would you want to welcome lawsuits from any user, regardless of if they pay you as little as $6/month?
No one with a brain "welcomes lawsuits" but this is a fool's errand. If Slack really messes up, they'll get hit with a lawsuit no matter what. And defending it will likely be just as expensive.
I hate to say it, but HipChat is really flawed (IRC, please). Slack is far superior technically. I'd still pick Slack. People may be blowing this out of proportion.
Binding arbitration clauses that just say both sides have to agree on an arbitrator aren't really a thing. That would be an 'agreement to agree' which in some jurisdictions is even void, because it's impossible to sue anyone over a breach of it. (Whose breach is it when two parties couldn't agree an arbitrator? Well, both, and neither).
So binding arbitration clauses either specify an arbitrator in the contract or allow one of the parties (guess which) to choose at runtime. The slack one is the former, it specifies one called 'JAMS ADR'.
No they're not.
While I don't care about this change (I'm not based in the US, so we were never going to be in a position to take slack to court), changing TOS to suit the drafter and offering no options, no ability to get to your data and no time for your customers to properly review the changes is a bullsh*t move and they deserve to be called on it.
Private and direct messages within a company should be thought of as not involving your coworkers, but IT and legal a might be monitoring.
The privacy level of these features can and will be misinterpreted. Read a few legal cases where employee communications are exhibited; you'd be surprised what people say on internal platforms.
You're on holiday or otherwise unavailable and someone needs some details for some obscure project you're working on? Crack open their email!
Those accounts and everything else belong to your employer and if it suits their purposes to go poking around your email or IMs, then they will.
This isn't necessarily what I want from a personal service, though.
I'm solidly against reading employee's personal email or gchat or IRC messages even though I think legally we probably could.
In the EU, things are a bit different and employees have a limited right to privacy when using corporate systems. Not so much in the US, though.
No clue how easy it is to sue a company on the other side of the world, though.
All sources are in Dutch, unfortunately.
[1] http://wetten.overheid.nl/BWBR0005289/Boek6/Titel5/Afdeling3/Artikel247/geldigheidsdatum_22-09-2014 (part 4)
[2] http://wetten.overheid.nl/BWBR0005289/Boek6/Titel5/Afdeling3/Artikel236/geldigheidsdatum_22-09-2014 (part n)
[*] IANAL-but-this-guy-is: http://www.iusmentis.com/contracten/algemenevoorwaarden/#zwartelijst1. Arbitration is going to potentially save hundreds of thousands of dollars down the line if there's a legal issue.
2. Arbitration incredibly favors the company over the customer.
3. Most customers don't understand the value of their right to civil action.
So while an arbitration clause is, in my mind, equivalent to telling your customers you don't actually care about being reliable, many companies are putting them into place just because they can.
#2 is true in most instances, but in order to find out you have to actually go through the entire arbitration and pay your lawyers' bills
#3 is very true, but that only adds to the idea that it's unethical.
Companies put them in because the corporate defense bar thinks this is the new hotness -- and few of those folks have ever actually litigated any of these clauses.
I used to complain about Delicious and after a while I stopped complaining and decided to use another service. As simple as that.
Because it offers a non-zero chance of the best outcome: a low cost, high benefit outcome where the world changes to fall in line with your expectations. If you do not say anything then the world has little chance of changing. It is a rational result of cost benefit analysis. (Consider that moving to another service is costly, and building a new one more costly still.)
Additionally, I would point out that complaining about things that we don't like is a universal human trait, which you yourself demonstrate. :)
On the other hand, I support Slack's option to do this. I don't think people here appreciate the financial load that class action suits place on consumer service companies.
Yes, class action lawsuits are a useful tool to extract concessions from companies, but they are also abused by litigators who are out to make a buck. Because often the cost of defending a lawsuit is such that early settlement is the best option even when the legal claims of the plaintiff are weak.
Slack is a corporation and should try to (within the law) remove as many of your rights as possible to protect investors and shareholders. If you don't like it, you know what to do.
Re: Slack. It looks very nice but it's not very difficult to copy it's product as yet, it's USP as with most of these things is timing. I would suggest there must be a few competitors that you can replace it with already?
Even if you accept that corporations must disregard ethics and legality and act solely to maximize the interests of their shareholders, that doesn't that you can't complain about their actions.
"In addition, Compliance Exports may include the edit history for messages that team members have edited as well as messages that team members have marked for deletion."
That makes me curious whether "deleting" a message actually deletes the data, in any circumstances.
In fact, even for folks on plans this covers it's not clear how much of this is "backwards compatible" with regard to data and conversations in Slack prior to these terms.
[Edit: actually I see now "Compliance Exports are not retroactive and do not apply to past private conversations before the feature is enabled" so strike the second paragraph.]
Also quite nice that "Compliance Exports are not retroactive and do not apply to past private conversations before the feature is enabled"
I understand specific companies have specific needs and Slack has to meet some of these but there is no reason that this should impact everyone else.
What I meant was that the possibility to access private chats should stay not retroactive and only happen once the company has explicitly stated it will need this feature enabled.
EDIT: so that if my company has no legal needs today it won't have access to private chats made today once they decide in the future that they now need the feature
https://konklone.com/post/slack-is-now-forcing-users-into-ar...
The post is titled "Slack is now forcing users into arbitration and that is terrible." I highly recommend reading it, as there's no mention of the arbitration ToS change in Slack's own blog post.
Edit: Also worth reading the ongoing conversation between Stewart Butterfield (Slack CEO) and Konklone on Twitter: https://twitter.com/stewart/status/536975596920635393
It makes these comments not make sense, and buries the real issue.
Context is key in any discussion. Let the voting system sort it out :)
In my opinion, both are pretty serious and not fluff. I'd still advise digging deeper if you're a Slack user.
Update: wow, someone changed both the title and url to point to the konklone article. I originally intended to primarily talk about the privacy implications of Compliance Export. Oh well.
We're working on a system for grouping related stories together, but don't know yet when it will be ready. In the meantime, we merge threads manually, and you have to fish through the comments looking for context (like what the previous url was, why it was changed, and so on). That's not great, but see the first sentence of this paragraph.
There were a couple of borderline calls here: first, whether there are two significant stories that deserve to be on the front page, or just one (I'd argue just one, but it's not obvious); second, which of the two urls should be on the front page. Initially we chose the one that had been submitted earlier and had the larger discussion. Based on user feedback, we've flipped to the other.
I'm marking this subthread off-topic now, so it doesn't stay at the top and make the thread be about HN story merging policy.
Anyway, I thought this might be an encouraging word for whenever you have to face this choice again in the future.