Kohl’s Sheds Consumers’ Bid to Force Company Into Arbitration

Kohl’s Corp. defeated consumers’ attempt to compel arbitration in a deceptive advertising dispute because the company failed to register its agreement with the the American Arbitration Association.

The US Court of Appeals for the Seventh Circuit, in a mixed ruling Friday, affirmed a lower court’s ruling stating it lacked the authority to undo the AAA’s decision to end proceedings.

Consumers sued Kohl’s after purchasing products online between 2020 and 2022. Online purchases required consumers to accept the company’s terms and conditions which incorporated an arbitration clause. The arbitration agreement required the consumers to handle any disputes with Kohl’s before the ...