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Binding arbitration and confidentiality agreements are two totally different things, that seem to be getting conflated here. There is a defensible argument for not allowing mandatory binding arbitration for certain things. But eliminating the ability of parties to agree to a confidential settlement is a huge mistake. It will result in victims getting less money. An allegation of harassment, without further evidence, is not going to fare well in court. Yet the accused might be willing to pay a settlement to put the matter to rest and avoid negative publicity. By prohibiting them from getting confidentiality in exchange for payment, you have removed their largest incentive to pay the accuser. Further, a publicized settlement will be taken as an admission of guilt, which is a further incentive to go to court. And those accused, who may be innocent, are protected as well. They can avoid having their name smeared in the media, where they stand no chance of getting a fair hearing in the current climate. |
Preventing sexual assaults is good for the public, publicizing cases of sexual assaults may well have a tendency to do that.
Based on your arguments above, I would come to the conclusion that NDAs on this should be banned. But I haven't thought enough about the topic to conclude that there aren't successful counter arguments.