Updated AAA Rules And Fees Could Change The Mass Arbitration Landscape

The American Arbitration Association (AAA) has amended its Mass Arbitration Supplementary Rules¹ and fee schedules² applicable to certain consumer and employment arbitrations, effective January 15, 2024. The AAA announced that it implemented these changes after receiving input from "individuals and businesses involved in mass arbitrations" and that it designed the new rules "to save time, reduce costs and foster constructive dialogue right from the start."³ The changes likely are a response to the recent trend of mass arbitrations being used not to resolve disputes on the merits of a claim but rather to exploit arbitral rules of procedure to obtain settlements regardless of the validity of any claim.