10 Consumer Agreement Changes to Mitigate the Risk of Mass Arbitration

By John Shope (August 24, 2022, 10:37 a.m. EDT) – As an arbitrator for the American Arbitration Association’s consumer panel, I notice a recent increase in mass arbitration filings.

A recent decision of the Federal District Court of San Francisco underlines the importance of a careful draft of consumer agreements to prevent the resolution of mass arbitration disputes based on excessive costs and risks of process, rather than on bottom.

July 1 in MacClelland v. Cellco Partnership,[1] Judge Edward Chen of the United States District Court for the North District of California rejected the request of Cellco and Verizon Communications Inc. aimed at obliging the individual arbitration of a project for collective appeal for false advertising.

Among others…

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Martin E. Berry