BGOV Bill Summary: H.R. 963, Block Mandatory Arbitration (1)

Agreements that require arbitration or ban class actions for future disputes couldn’t be enforced under H.R. 963 in cases related to consumer, employment, antitrust, or civil rights matters.

Sometimes called “mandatory arbitration” or “forced arbitration,” the terms are common in employment and consumer contracts and require any disputes to be adjudicated by private arbitrators rather than in court.

The prohibition would apply to claims, including class actions, that:

• Arise between consumers and sellers when acquiring property, services including digital technology, investments, or credit. It would also apply to claims involving third parties, such as those providing financing for such deals. ...