AAA's Consumer Claims Registry Effective September 1, 2014 | Practical Law

AAA's Consumer Claims Registry Effective September 1, 2014 | Practical Law

The American Arbitration Association (AAA) has established a Consumer Clause Registry and as of September 1, 2014, all businesses that include an arbitration clause in a consumer contract must submit their proposed clause to the Registry for review and registration.

AAA's Consumer Claims Registry Effective September 1, 2014

Practical Law Legal Update 6-578-7685 (Approx. 3 pages)

AAA's Consumer Claims Registry Effective September 1, 2014

by Practical Law Litigation
Published on 25 Aug 2014 • USA (National/Federal)
The American Arbitration Association (AAA) has established a Consumer Clause Registry and as of September 1, 2014, all businesses that include an arbitration clause in a consumer contract must submit their proposed clause to the Registry for review and registration.
Under AAA R-12, beginning September 1, 2014, businesses that provide for or intend to incorporate AAA rules in a consumer contract should:
  • Notify the AAA of the actual or expected existence of the consumer arbitration clause at least 30 days before the planned effective date of the contract.
  • Provide a copy of the arbitration clause to the AAA.
  • Submit a nonrefundable fee to the AAA for its review of the clause and maintenance of a publicly-available clause registry.
After the AAA reviews the arbitration clause and determines that the clause substantially and materially complies with the due process standards of the Consumer Due Process Protocol, receives the annual registry fee and determines that it will administer disputes arising under the agreement, the business will be included in the publicly-accessible Consumer Clause Registry. Any subsequent changes, additions, deletions and amendments to a registered clause must be resubmitted for review; an additional review fee will be assessed at that time.
If a business has not registered its arbitration clause before a consumer case is filed with the AAA, the business must register its clause at that time. The business is responsible for paying the registry fee (and any fee for expedited review), along with any other filing fees that are owed for that case.
The AAA will decline to administer consumer arbitrations arising out of an arbitration clause where the business fails to pay the review fee.