Enforceability of Mandatory Arbitration in Online Contracts

The Consumer Financial Protection Bureau has issued a proposed rule that would limit the use of mandatory arbitration in certain consumer finance contracts, including online agreements. This article focuses on the differing results reached in recent cases involving defendants' motions to compel arbitration.

8 minute read August 01, 2016 at 12:00 AM
By
Richard Raysman and Peter Brown
Enforceability of Mandatory Arbitration in Online Contracts

On May 5, 2016, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule that would limit the use of mandatory arbitration in certain consumer finance contracts. Specifically, the proposal focuses on such arbitration provisions that proscribe consumers from filing class action lawsuits.

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