
Joel N. Kreizman
Partner
732-568-8363 jkreizman@sh-law.comFirm News
Author: Joel N. Kreizman
Date: September 19, 2014
Partner
732-568-8363 jkreizman@sh-law.comThe American Arbitration Association’s (AAA) new Consumer Arbitration Rules took effect on September 1, 2014. New York and New Jersey businesses that include clauses in their consumer contracts providing for AAA administration should be aware that there are a number of key changes, including the requirement to register all agreements in a newly created online database.
The AAA defines a consumer agreement as “an agreement between an individual consumer and a business where the business has a standardized, systematic application of arbitration clauses with customers and where the terms and conditions of the purchase of standardized, consumable goods or services are non-negotiable or primarily non-negotiable in most or all of its terms, conditions, features, or choices.” The product or service must be for personal or household use. Common examples include credit card agreements, automobile leases, cell phone contracts, and fitness club membership agreements.
The new rules apply specifically to consumer contracts and replace the AAA’s Consumer-Related Disputes Supplementary Procedures, which were previously used in conjunction with the Commercial Rules. The 55 new rules spell out the procedures in much greater detail, including hearing procedures, timelines, and resolution of disputes by documents.
The most significant change under the new rules is the creation of Consumer Clause Registry. According to the AAA, the online database “was created to provide more access to information about the AAA’s consumer arbitration services” and will “contain a list of businesses that have submitted their consumer arbitration clauses with 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.”
Under the new rules, the AAA will only accept a case for arbitration if the clause is first reviewed and approved by AAA. Rule 12 specifically states that any business that “provides for or intends to provide for” AAA administration in a consumer contract “should notify the AAA of the existence of such a consumer contract or of its intention to do so at least 30 days before the planned effective date of the contract.” If a business has not registered its consumer clause prior to the filing of a consumer case, the AAA will require that the business register its clause at that time and will conduct an expedited review.
Businesses will also incur new fees under the amended consumer rules. The AAA will charge a non-refundable $500 annual fee to conduct the review and maintain the Registry. For this year, however, a $650 fee will maintain the business in the Registry through 2015. Companies who do not submit their arbitration agreements until a case is filed will also incur an additional $250 fee for expedited review.
If you have any questions about the AAA’s new consumer rules or would like to discuss how they may impact your business, please contact me or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
FeedSpot Recognizes Donald Scarinci’s Government & Law Blog One of the Top 20 Public Law Blogs Little Falls, NJ – May 22, 2025 – Scarinci Hollenbeck, LLC is honored to share that Managing Partner Donald Scarinci’s Government & Law blog has been listed by FeedSpot.com as one of the “20 Best Public Law Blogs and […]
Author: Scarinci Hollenbeck, LLC
SH Partner and 100th Bomb Group Foundation Legal Counsel Discussed The Nuremberg Trials and the Law May 21, 2025 – Little Falls, NJ – Scarinci & Hollenbeck, LLC is proud to share that partner Ronald S. “Ron” Bienstock recently spoke at the 100th Bomb Group Biennial Reunion, held May 15-18, 2025, in New Orleans. The […]
Author: Ronald S. Bienstock
Little Falls, NJ – May 1, 2025 – Scarinci Hollenbeck, LLC is proud to share that Managing Partner Donald Scarinci’s Constitutional Law Reporter blog has been listed by FeedSpot.com as one of the “Top 100 Legal Blogs.” No Aspect of the advertisement has been approved by the Supreme Court. Feedspot, a content reader that curates websites of […]
Author: Donald Scarinci
Little Falls, NJ – May 1, 2025 – Scarinci Hollenbeck, LLC is proud to share that Managing Partner Donald Scarinci’s Government & Law blog has been listed by FeedSpot.com as one of the “80 Best New Jersey Blogs and Websites in 2025.” *No Aspect of the advertisement has been approved by the Supreme Court of New […]
Author: Donald Scarinci
Scarinci Hollenbeck Partner Nathanya G. Simon named by ROI-NJ to the “ROI Influencers: Women in Business” list for fourth consecutive year Scarinci Hollenbeck Partner Nathanya G. Simon has been named by ROI-NJ to the “ROI Influencers: Women in Business” list for 2025. After four decades of practice, Nathanya’s pioneering influence in the field of special […]
Author: Nathanya G. Simon
Congratulations Angela Turiano on appointment as Director of Legislative Affairs for SHRM Princeton April 17, 2025 – Little Falls, NJ – Scarinci & Hollenbeck, LLC congratulates Partner Angela Turiano on her appointment as Director of Legislative Affairs for SHRM Princeton. Along with serving as a member of SHRM Princeton’s leadership team, Angela will monitor pending legislative, regulatory, […]
Author: Angela A. Turiano
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!