United States:
CFPB Proposes Prohibition On Mandatory Consumer Arbitration Clauses
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On May 5, 2016, the Consumer Financial Protection
Bureau (CFPB) issued and sought comment
on proposed rules prohibiting mandatory arbitration
clauses that deny groups of consumers their day in court.
Under the proposed rules, companies would be prohibited from
putting mandatory arbitration clauses in new consumer contracts
that would prevent consumers from bringing
class actions. Comments must be received on or
before 90 days after publication in the Federal Register. Press Release. Proposed Rule.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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