I don't understand, why do you think this is wrong?

Isn't the whole point of the "Small Claims" court, to be simple and not require a massive undertaking?

Also, the discrimination thing is a result that I've not (personally) heard anyone mention before.

It's supposed to be less complicated than bringing in lawyers but you still need to file everything, show up in a suit, and be prepared to argue your case. It isn't like you can just fill out a brief online form and get a refund. It's an all-day affair. Also most courts are only open during working hours, so you'll have to take time off, but there are exceptions to this.

I'm not sure how to respond to your second point about discrimiation, it becomes public record and "suing someone" isn't a protected class. Here's something I found after a brief google: https://law.stackexchange.com/questions/17917/can-companies-...

Oh. You said "massive ordeal", which (to me) is much more than a single day thing.

I guess it's just a difference in terminology. :)