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ARTICLE · 13 FEBRUARY 2024

American Arbitration Association Adopts New Mass Arbitration Rules And Fee Schedules

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The American Arbitration Association (AAA) has announced updates to its Mass Arbitration Supplementary Rules and its fee schedules for consumer and employment mass arbitrations.

United StatesLitigation, Mediation & Arbitration
Andrew Pincus
Andrew Pincus
Archis Parasharami
Archis Parasharami
Megan S. Webster
Megan S. Webster
Kevin Ranlett
Kevin Ranlett
Daniel E. Jones
Daniel E. Jones
Andrew Demko
Andrew Demko
Tony Weibell
Tony Weibell
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The American Arbitration Association (AAA) has announced updates to its Mass Arbitration Supplementary Rules and its fee schedules for consumer and employment mass arbitrations.

These changes may ameliorate some of the worst abuses in recent mass arbitrations and are a welcome development in that respect. But they do not come close to eliminating the risks associated with abusive mass arbitrations. Businesses should consider reviewing and—if necessary—updating their consumer and workplace arbitration agreements.

Mass Arbitration Abuses

In a mass arbitration, a lawyer or coordinated group of lawyers files (or threatens to file) a significant number of individual arbitrations asserting similar claims. Mass arbitrations are not inherently improper but have in recent years been subject to extraordinary abuse, as some lawyers have sought to weaponize the arbitration fees that businesses must pay. Because businesses typically must pay arbitration fees even if they win

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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