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It’s meant for B2B lawsuits, so they can both avoid extra litigation costs. They forced it onto consumers because they wanted to win more. They get to choose their arbitrator and avoid more public cases.
There has been some push back in recent years. This article by Consumer Reports shows some ways as to how people have been fighting back.
It makes sense to have the option, but this trend of signing away your rights in the fine print should be outlawed.
Especially if you didn’t sign anything.
Some consumer products are showing up with arbitration notices on the packaging now, and they count opening the box as “accepting” the agreement.