American Express Co. v. Italian Colors Restaurant

*231We consider whether a contractual waiver of class arbitration is enforceable under the Federal Arbitration Act when the plaintiff's cost of individually arbitrating a federal statutory claim exceeds the potential recovery.

*2308I

Respondents are merchants who accept American Express cards. Their agreement with petitioners-American Express and a wholly owned subsidiary-contains a clause that requires all disputes between the parties to be resolved by arbitration. The agreement also provides that "[t]here shall be no right or authority for any Claims to be arbitrated on a class action basis." In re…