On May 1, 2025, the American Arbitration Association (AAA) implemented its new Consumer Arbitration Rules and Mediation Procedures. These changes, designed to enhance fairness and efficiency in arbitration processes, address everything from fee structures to case consolidation. We have summarized the most significant changes:
Registering Arbitration Clauses: All parties must now register their arbitration clauses with the AAA. If a party does not pay the related fees or refuses to waive any provision that does not comply with the Consumer Due Process Protocol, the AAA will decline to administer the associated arbitration. In addition, the AAA may decline to administer future matters involving a business that does not pay its fees.
Consolidation: If one party files multiple claims arising from the same contract, the AAA can now consolidate them into one case. In contrast, if one party files multiple claims arising from different contracts, the AAA may treat them as individual cases.
Resolving Conflicts Between Different Agreements: If one party claims that one agreement applies to an arbitration, but the other party claims that another agreement applies, the AAA will first make an initial determination about which provision controls, subject to the arbitrator’s final determination.
Small Claims Court Jurisdiction: If a respondent argues that a claim should be filed in small claims court, the AAA will first ask all parties to comment on this request. If they agree, then the dispute will be heard in small claims court and the AAA will close the case. If they disagree, the arbitrator will decide which court has proper jurisdiction.
Declining or Ceasing Administration of Cases: Before the recent changes, the AAA could only decline or cease administration of a case due to a party’s improper conduct, e.g., threatening or harassing behavior towards others involved in the mediation. The AAA may now decline or cease administering cases in three scenarios:
Mediation: Parties may request mediation, or be offered mediation by the AAA, while their cases are pending. Unless the parties agree otherwise, the AAA will conduct the mediation according to its Consumer Mediation Procedures. Also, unless the parties agree otherwise, mediations will take place at the same time as arbitrations, though the mediator and the arbitrator will not be the same person. Parties shall inform the AAA when a mediation is complete.
Motions: R-24 on Written Motions and R-33 on Dispositive Motions have now been consolidated into one rule, R-31 on Motions. In addition, while arbitrators could previously allow parties to file dispositive motions “if” they showed that the motion was substantially likely to (1) succeed and (2) dispose of or narrow the issues in the case, parties can now file dispositive motions “only if” both of the above criteria are met. Arbitrators must now also consider the time and cost involved with the briefing of a dispositive motion before deciding whether to allow one.
Sanctions: Arbitrators now have the authority to issue sanctions.
The recent overhaul of the AAA's Consumer Arbitration Rules and Mediation Procedures marks a critical step toward streamlining and enforcing more stringent standards in arbitration practices. By addressing key issues such as arbitration clause registration, case administration, and the introduction of mediation alongside arbitration, the AAA aims to foster a more robust and equitable framework for dispute resolution. These changes are poised to significantly influence how businesses and consumers engage with the arbitration process.
Summer associate Astrid Kelser contributed to this alert.