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American Arbitration Rule Now in Effect: Consumer Clause Registry

American Arbitration Rule Now in Effect: Consumer Clause Registry
Monday, September 8, 2014

The American Arbitration Association (“AAA”) now will require businesses seeking to use AAA’s services for consumer arbitrations to submit their arbitration clauses for AAA’s review and approval.  Approved clauses will become part of the AAA’s “Consumer Clause Registry,” which “will contain a list of businesses that have submitted their consumer arbitration clauses [to] the AAA and where upon review the AAA has determined that the clause substantially and materially complies with the due process standards of the Consumer Due Process Protocol.”  AAA’s principal competitor, JAMS, does not appear to have any similar requirements.

This simply is something for companies to consider before stating in an arbitration clause that disputes will be subject to the AAA’s rules.

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