American Arbitration Association

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As we previously reported, the American Arbitration Association has been considering changes to its rules for consumer and workplace arbitrations. In February 2025, the AAA requested public comments on proposed changes to its rules. We submitted comprehensive comments to identify ways to improve the proposed rules to ensure fairness for all while reducing the risks of abuse of the arbitration process—especially in mass arbitrations.

The AAA has published at least some of the comments it received about its proposed consumer and employment rules, although the AAA allowed a number of commentators to remain anonymous.

After considering these comments, the…

Continue Reading American Arbitration Association announces new consumer and employment arbitration rules

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…

Continue Reading Comments on proposed changes to American Arbitration Association consumer and employment arbitration rules

The American Arbitration Association has announced that it has drafted potential amendments to its Consumer Arbitration Rules and Employment Arbitration Rules, and is seeking comments on those proposed revisions. The AAA has posted the proposed new Consumer and Employment Rules, charts comparing the new Consumer and Employment language to the current language, as well as summaries of the extensive revisions (one for the Consumer Rules changes and one for the Employment Rules changes).

We are evaluating the proposed changes, which are numerous. The deadline to submit comments is February 28, 2025. We anticipate working with members of…

Continue Reading American Arbitration Association seeks comments on changes to consumer and employment arbitration rules

The Seventh Circuit’s recent decision in Wallrich v. Samsung Electronics America, Inc. is significant news in the world of mass arbitration. In recent years, businesses have faced an increasing risk of being targeted by abusive mass arbitration campaigns that seek to leverage the arbitration fees the business must pay, win or lose, to coerce a settlement of even meritless claims. In Wallrich, Samsung was facing a mass arbitration that it contended was based on meritless claims; among other things, Samsung said, some of the claimants were not really Samsung customers at all.Continue Reading Seventh Circuit reverses order forcing Samsung to pay arbitration fees for mass arbitration

The AAA recently announced a new set of rules of mass arbitrations, as well as new fee schedules for consumer and worker arbitrations. We and some of our colleagues wrote a Legal Update about the changes, how they impact businesses, and whether the updates might help with widespread abuses in mass arbitrations.

Continue Reading American Arbitration Association updates its mass arbitration rules and fee schedules