- it avoids costly class actions in "big" cases - it avoids costly discovery in "big" cases - it avoids sky-high damages claims in extreme cases - it allows small everyday fuck-ups to be handled more cheaply than a court
However, I'd argue that for this kind of issue, arbitration isn't necessarily worse. Especially in a clear-cut case, you don't need the court to win, you just need the court to trigger an escalation at the company. Arbitration is good enough for that.