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Federal Arbitration Act Consumer Contracts

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
ArentFox Schiff

Hohenshelt v. Superior Court Confirms California Arbitration Fee Law Survives FAA Preemption Challenge

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On August 11, the California Supreme Court issued a significant decision in Hohenshelt v. Superior Court addressing the interplay between the Federal Arbitration Act (FAA) and California’s statutory requirements for timely...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Supreme Court Rules FAA Does Not Preempt Arbitration Fee Deadline, Rejects Strict Penalties

On August 11, 2025, the Supreme Court of California ruled that the Federal Arbitration Act (FAA) does not preempt a state statute requiring employers to timely pay arbitration fees or forfeit the right to arbitration. The...more

Fenwick & West LLP

CA Supreme Court: Federal Arbitration Act Does Not Preempt State Law on Timely Arbitration Fee Payment

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The California Supreme Court recently held in Hohenshelt v. Superior Court that the Federal Arbitration Act (FAA) does not preempt a California law that penalizes businesses that have consumer and employee arbitration...more

Troutman Amin LLP

SIGNED BY SILENCE?: Court Finds Consumer Agreed to Arbitration By Failing To Respond to A Text Message– And Its A Little Odd

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Hello from the road! So contract law generally requires a party to manifest their assent to the terms of any agreement. That means while you cannot get away with saying “I didnt read the contract I signed” you generally can...more

Saul Ewing LLP

Eleventh Circuit Rules Consumer Must Arbitrate FCRA Suit Following Clickwrap Agreement

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How can a company ensure that its clickwrap agreements for services are worth more than just the pixels they’re displayed on? In a recent ruling from the U.S. Court of Appeals for the Eleventh Circuit, the answer may be as...more

McGlinchey Stafford

Litigation Byte (June 2025 Edition)

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SCOTUS Says: Hobbs Act Does Not Bind a District Court to the FCC’s Interpretation of a Statute - On May 1, 2025, the American Arbitration Association’s new amendments to the Consumer Arbitration Rules officially went into...more

Alston & Bird

California Imposes Restrictions on Arbitration Clauses in Consumer Agreements

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What happens in California, stays in California. Our Class Action Team examines a new California law that keeps California consumers’ arbitration proceedings in California....more

Troutman Pepper Locke

Fourth Circuit Finds Unilateral Change-in-Terms Provision Rendered the Arbitration Agreement Illusory Under Maryland Law

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On March 11, the U.S. Court of Appeals for the Fourth Circuit affirmed the district court’s denial of a motion to compel arbitration in two class-action lawsuits. The decision potentially has far-reaching implications for the...more

Frost Brown Todd

Clicking Has Consequences: Fourth Circuit Rules Streaming Service’s Arbitration Clause in Website Registration Is Enforceable

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Proponents of arbitration received a victory in federal court this past Tuesday when the U.S. Court of Appeals for the Fourth Circuit issued its published decision in Dhruva v. CuriosityStream, Inc. ...more

Ballard Spahr LLP

Consumer Finance Monitor Podcast Episode: “Accidental Arbitration” -- A New Theory that Would Rein in Consumer Arbitration Clauses...

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Our special guest is David Horton, Professor of Law at the University of California, Davis, who has written a creative and thought-provoking article analyzing how courts should interpret certain key provisions that are...more

Ballard Spahr LLP

New Jersey Supreme Court Enforces Stand-Alone Class Action Waiver

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Earlier this year, the New Jersey Supreme Court held in Pace v. Hamilton Cove that class action waivers in consumer contracts that do not contain an arbitration clause (i.e., a stand-alone class action waiver) are not per se...more

Troutman Pepper Locke

Ninth Circuit Issues Decision Limiting Scope of Concepcion

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In Heckman v. Live Nation Entertainment, Inc., a panel of the Ninth Circuit affirmed a lower court decision refusing to enforce the Ticketmaster arbitration provision in a purported consumer antitrust class action brought...more

Goodwin

Ninth Circuit Strikes Mass Arbitration Agreement as Unenforceable under California Law

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On October 28, 2024, the Ninth Circuit struck a mass arbitration agreement as unconscionable and unenforceable under California law in Heckman v. Live Nation Ent., Inc., No. 23-55770.  The three-judge panel affirmed the...more

Mayer Brown

Consumer Arbitration in the US

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Join us for the latest episode of Financial Services Focus as Andy Demko and Archis Parasharami discuss how consumer arbitration became popular among U.S. businesses in response to class actions from the late 90s onward. The...more

Ballard Spahr LLP

Comment letters from consumer advocates bolster case against CFPB rulemaking on post-dispute arbitration clauses

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We previously reported and released a podcast episode on comments that we and Professor David Sherwyn of Cornell University submitted in opposition to the Petition for Rulemaking filed by a number of consumer advocacy groups...more

Ballard Spahr LLP

OppFi Hat Trick: Third Federal Court Upholds Arbitration Clause

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Earlier this month, in Fama v. Opportunity Financial LLC, a Magistrate Judge of the federal district court for the Western District of Washington held that the arbitration provision in OppFi’s installment loan agreement is...more

Ballard Spahr LLP

Consumer Advocates Petition CFPB to Undertake Rulemaking to Prohibit “Pre-dispute” Consumer Arbitration Clauses

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Earlier last week, a group of consumer advocate organizations filed a Petition for Rulemaking with the CFPB that would prohibit the use of pre-dispute arbitration clauses in consumer contracts in favor of arbitration clauses...more

Ballard Spahr LLP

Further thoughts on consumer understanding of arbitration clauses

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Professor Jeff Sovern recently blogged about the FTC’s June 2023 revisions to its Endorsement Guide. The Guide helps advertisers and endorsers make sure that their advertising using endorsements or testimonials is truthful...more

Ballard Spahr LLP

New Jersey appellate court decision limiting Atalese to consumer and employment arbitration clauses may fuel FAA preemption...

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In 2014, the New Jersey Supreme Court held in Atalese v. U.S. Legal Services Group, L.P. that in order to be enforceable, arbitration clauses must contain an express waiver of the parties’ right to seek relief in a court of...more

Wyrick Robbins Yates & Ponton LLP

Staying on the Front Foot in the Face of Mass Arbitrations

Introduction - For many of us, fall means football.  And regardless of whether your football flavor is the American pigskin variety, or the beautiful game we call soccer in the United States, you can appreciate the...more

Stinson LLP

Missouri Supreme Court Holds Consumer Arbitration Agreements Enforceable

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On Tuesday, July 12, 2022, the Missouri Supreme Court issued a unanimous opinion in Bridgecrest Acceptance Corporation v. Kelly Donaldson and Robert Haulcy, No. SC99269 and Bridgecrest Acceptance Corporation v. Christopher...more

Ballard Spahr LLP

Preparing for the Restatement of the Law, Consumer Contracts

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For a more detailed discussion of the new Restatement, we encourage you to also listen to the episode of the Consumer Finance Monitor Podcast released today with Ballard Spahr’s Alan Kaplinsky (who is on the ALI Board of...more

Robinson+Cole Class Actions Insider

Class Action Fairness Act Does Not Override the Federal Arbitration Act, According to the Sixth Circuit

A recent Sixth Circuit decision caught my eye because it addressed an important issue on which I have not seen any other appellate decisions (and none were cited in the opinion). The plaintiff argued that the Class Action...more

Downs Rachlin Martin PLLC

Vermont Supreme Court Issues Important Decision On The Enforceability Of Arbitration Clauses In Consumer Agreements And The...

The Court Affirmed A Lower Court’s Enforcement Of The Arbitration Clause, Requiring The Consumers To Arbitrate Their Claims Against A Home Inspection Company, And Also Affirmed The Lower Court’s Refusal To Vacate The...more

Carlton Fields

Supreme Court of Mississippi Enforces Arbitration Agreement

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The Supreme Court of Mississippi has reversed and remanded a trial court’s refusal to enforce an arbitration agreement after rejecting the plaintiff’s arguments against arbitration. The Court also instructed the trial court...more

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