CINXE.COM
Consumer Arbitration Minimum Standards | JAMS Mediation, Arbitration, ADR Services
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List, ID: 177080 --><!-- ./CTA List, ID: 177080 --> </div> </div> </div> </div> </div> </div> <div class="slider-nav"> <div class="container"> <div class="slider-nav-item" style="display: none;"> <button type="button" class="slider-nav-btn"> <div class="slider-nav-btn-progress"></div> <div class="slider-nav-btn-title">Consumer Arbitration Minimum Standards</div> </button> </div> </div> <div class="mobile-title" style="display: none"> <p> Next: <span id="slider-next-title"></span> </p> </div> </div> </div> </section><!-- ./Compact Hero Slider, ID: 178971 --> <div class="general-content-detail"> <section class="section section-landing-panels"> <div class="container section-container"> <div class="tabs"> <div role="tablist" aria-label="JAMS Landing Tabs" class="tablist mobile-slider"> </div> <div class="tabs-slider-controls"> <button type="button" class="btn slider-control slider-prev" aria-label="Previous Tabs" disabled=""> <svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" fill="none" viewBox="0 0 24 24" stroke="currentColor"> <path stroke-linecap="round" stroke-linejoin="round" stroke-width="3" d="M15 19l-7-7 7-7"></path> </svg> </button> <button type="button" class="btn slider-control slider-next" aria-label="Next Tabs" disabled=""> <svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" fill="none" viewBox="0 0 24 24" stroke="currentColor"> <path stroke-linecap="round" stroke-linejoin="round" stroke-width="3" d="M9 5l7 7-7 7"></path> </svg> </button> </div> </div> <!--- overview --> <div id="overview-panel" role="tabpanel" tabindex="0" aria-labelledby="overview-tab" class="tab-panel overview-panel"> <div class="container section-container"> <!--DragDropZone--> <!--ContentBlockSection--> <!-- Content Block Section, ID: 178896 --><section class="section section-landing-panels"> <div class="overview-panel"> <div class="container section-container"> <!-- Content Blocks List, ID: 181742 --><section class="panel-section"> <!-- Panel Title, ID: 178909 --><h1 class=" heading-large heading-underline panel-section-title">JAMS Policy on Consumer Arbitrations Pursuant to Pre-Dispute Clauses Minimum Standards of Procedural Fairness</h1><!-- ./Panel Title, ID: 178909 --> <div class="panel-section-content"> <div class="panel-body"> <!-- WYSIWYG Panel, ID: 178838 --><div class="panel-body"> <!-- Panel Title, ID: 178909 --><!-- ./Panel Title, ID: 178909 --> <p><em>The JAMS Consumer Minimum Standards of Procedural Fairness have been updated, effective May 1, 2024. Standard No. 5 of the CMS now provides: “The consumer's access to arbitration must not be precluded by the location of the arbitration.”</em></p> <hr/> <p><em>Effective May 1, 2024</em></p> <p><strong>Minimum Standards for Arbitration Procedures</strong></p> <p>JAMS will administer arbitrations pursuant to mandatory pre-dispute arbitration clauses between companies and consumers<sup>1</sup> only if the contract arbitration clause and specified applicable rules comply with the following minimum standards of fairness:</p> <ol> <li>The arbitration agreement must be reciprocally binding on all parties such that (a) if a consumer is required to arbitrate his or her claims or all claims of a certain type, the company is so bound; and (b) no party shall be precluded from seeking remedies in small claims court for disputes or claims within the scope of its jurisdiction.</li> <li>The consumer must be given notice of the arbitration clause. Its existence, terms, conditions and implications must be clear.</li> <li>Remedies that would otherwise be available to the consumer under applicable federal, state or local laws must remain available under the arbitration clause, unless the consumer retains the right to pursue the unavailable remedies in court.</li> <li>The arbitrator(s) must be neutral, and the consumer must have a reasonable opportunity to participate in the process of choosing the arbitrator(s).</li> <li>The consumer's access to arbitration must not be precluded by the location of the arbitration. </li> <li>The clause or procedures must not discourage the use of counsel.</li> <li>With respect to the cost of the arbitration, when a consumer initiates arbitration against the company, the only fee required to be paid by the consumer is $250, which is approximately equivalent to current court filing fees. All other costs must be borne by the company, including any remaining JAMS Filing Fee, Case Management Fee and all professional fees for the arbitrator's services. When the company is the claiming party initiating an arbitration against the consumer, the company will be required to pay all costs associated with the arbitration.</li> <li>In California, the arbitration provision may not require the consumer to pay the fees and costs incurred by the opposing party if the consumer does not prevail.</li> <li>The arbitration provision must allow for the discovery or exchange of non-privileged information relevant to the dispute.</li> <li>An Arbitrator's Award will consist of a written statement stating the disposition of each claim. The award will also provide a concise written statement of the essential findings and conclusions on which the award is based.</li> </ol></div><!-- ./WYSIWYG Panel, ID: 178838 --> </div> </div> </section> <section class="panel-section"> <!-- Panel Title, ID: 178909 --><!-- ./Panel Title, ID: 178909 --> <div class="panel-section-content panel-cols cols-2-1"> <div class="panel-body"> <!-- WYSIWYG Panel, ID: 178838 --><div class="panel-body"> <!-- Panel Title, ID: 178909 --><!-- ./Panel Title, ID: 178909 --> <p><sup>1</sup> These standards are applicable where a company systematically places an arbitration clause in its agreements with individual consumers and there is minimal, if any, negotiation between the parties as to the procedures or other terms of the arbitration clause. A consumer is defined as an individual who seeks or acquires any goods or services, primarily for personal, family or household purposes, including the credit transactions associated with such purchases, or personal banking transactions. These standards do not apply to the use of arbitration in resolving disputes arising from commercial transactions between a lender and commercial borrowers or a company and commercial customers; other financial services such as investment transactions or real estate transactions; or to matters involving underinsured motorists. Nor do they apply if the agreement to arbitrate was negotiated by the individual consumer and the company.<br/><br/></p> <p>(c) Copyright 2024 JAMS. All rights reserved.</p></div><!-- ./WYSIWYG Panel, ID: 178838 --> </div> <div class="panel-body"> <!-- Additional Resources One Column, ID: 179932 --> <div class="panel-card resources-card"> <h3 class="heading-small resources-card-title">Arbitration Resources</h3> <div class="card-body"> <p> <span class="icon"><svg xmlns="http://www.w3.org/2000/svg" fill="none" viewBox="0 0 24 24" width="16" height="16" stroke="currentColor"><path stroke-linecap="round" stroke-linejoin="round" stroke-width="2" d="M9 5l7 7-7 7"></path></svg></span> <a href="https://www.jamsadr.com/arbitration-defined/" class="link" target="_self">What Is Arbitration?</a> </p> <p> <span class="icon"><svg xmlns="http://www.w3.org/2000/svg" fill="none" viewBox="0 0 24 24" width="16" height="16" stroke="currentColor"><path stroke-linecap="round" stroke-linejoin="round" stroke-width="2" d="M9 5l7 7-7 7"></path></svg></span> <a href="https://www.jamsadr.com/adr-rules-procedures/" class="link" target="_self">Rules, Clauses, and Procedures</a> </p> <p> <span class="icon"><svg xmlns="http://www.w3.org/2000/svg" fill="none" viewBox="0 0 24 24" width="16" height="16" stroke="currentColor"><path stroke-linecap="round" stroke-linejoin="round" stroke-width="2" d="M9 5l7 7-7 7"></path></svg></span> <a href="https://www.jamsadr.com/arbitration-discovery-protocols/" class="link" target="_self">Discovery Protocols</a> </p> <p> <span class="icon"><svg xmlns="http://www.w3.org/2000/svg" fill="none" viewBox="0 0 24 24" width="16" height="16" stroke="currentColor"><path stroke-linecap="round" stroke-linejoin="round" stroke-width="2" d="M9 5l7 7-7 7"></path></svg></span> <a href="https://www.jamsadr.com/arbitrators-ethics/" class="link" target="_self">Arbitrators Ethics Guidelines</a> </p> <p> <span class="icon"><svg xmlns="http://www.w3.org/2000/svg" fill="none" viewBox="0 0 24 24" width="16" height="16" stroke="currentColor"><path stroke-linecap="round" stroke-linejoin="round" stroke-width="2" d="M9 5l7 7-7 7"></path></svg></span> <a href="https://www.jamsadr.com/adr-forms/" class="link" target="_self">Arbitration Forms</a> </p> <p> <span class="icon"><svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 384 512" fill="currentColor" width="16" height="16"><path d="M181.9 256.1c-5-16-4.9-46.9-2-46.9 8.4 0 7.6 36.9 2 46.9zm-1.7 47.2c-7.7 20.2-17.3 43.3-28.4 62.7 18.3-7 39-17.2 62.9-21.9-12.7-9.6-24.9-23.4-34.5-40.8zM86.1 428.1c0 .8 13.2-5.4 34.9-40.2-6.7 6.3-29.1 24.5-34.9 40.2zM248 160h136v328c0 13.3-10.7 24-24 24H24c-13.3 0-24-10.7-24-24V24C0 10.7 10.7 0 24 0h200v136c0 13.2 10.8 24 24 24zm-8 171.8c-20-12.2-33.3-29-42.7-53.8 4.5-18.5 11.6-46.6 6.2-64.2-4.7-29.4-42.4-26.5-47.8-6.8-5 18.3-.4 44.1 8.1 77-11.6 27.6-28.7 64.6-40.8 85.8-.1 0-.1.1-.2.1-27.1 13.9-73.6 44.5-54.5 68 5.6 6.9 16 10 21.5 10 17.9 0 35.7-18 61.1-61.8 25.8-8.5 54.1-19.1 79-23.2 21.7 11.8 47.1 19.5 64 19.5 29.2 0 31.2-32 19.7-43.4-13.9-13.6-54.3-9.7-73.6-7.2zM377 105L279 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