As we previously discussed, the American Arbitration Association requested comments on proposed changes to its Consumer and Employment Arbitration Rules.
We submitted comprehensive comments on the proposed amendments on behalf of the U.S. Chamber of Commerce, the American Financial Services Association, and the Automotive Alliance for Innovation. The comments identify ways in which the proposed changes can be modified to ensure fairness for all parties while reducing the risks of potential abuse of the arbitration process.
Notably, the comments focus heavily on the urgent need for action to curb abusive mass arbitrations. We have discussed the issue of mass arbitrations in more detail in the Chamber’s white paper and our report about the AAA’s January 2024 announcement of new mass arbitration rules and fee schedules.
We’re hopeful that the AAA takes these comments into account and updates its proposed rule changes to account for the issues we have identified.