Consumer Arbitration Data Reporting Act

Summary: The Consumer Arbitration Data Reporting Act requires any private arbitration company to publish a series of data about cases handled by the company in order to bring transparency to the process.

Source: CAL. CCP. Code Section 1281.96

SECTION 1. SHORT TITLE

This Act shall be called the “Consumer Arbitration Data Reporting Act.”

SECTION 2. PURPOSE

This law is enacted to promote fairness in arbitrations by bringing a measure of transparency to the process.

SECTION 3. CONSUMER ARBITRATION DATA REPORTING

After section XXX, the following new section XXX shall be inserted:

1. Any private arbitration company that administers or is otherwise involved in consumer arbitration shall collect, publish, and make available to the public in a computer-searchable format on a public website all of the following for the preceding calendar year:

(a) The name of the nonconsumer party, if the nonconsumer party is a corporation or other business entity.

(b) The type of dispute involved, including goods, banking, insurance, health care, employment, and if it involves employment, the amount of the employee’s annual wage divided into the following ranges: less than $100,000, $100,000-$250,000, and over $250,000.

(c) Whether the consumer or nonconsumer party was the prevailing party.

(d) On how many occasions, if any, the nonconsumer party has previously been a party in an arbitration or mediation administered by the private arbitration company.

(e) Whether the consumer party was represented by an attorney.

(f) The date the private arbitration company received the demand for arbitration, the date the arbitrator was appointed, and the date of disposition by the arbitrator or private arbitration company.

(g) The type of disposition of the dispute, if known, including withdrawal, abandonment, settlement, award after hearing, award without hearing, default, or dismissal without hearing.

(h) The amount of the claim, the amount of the award, and any other relief granted, if any.

(i) The name of the arbitrator, his or her total fee for the case, and the percentage of the arbitrator’s fee allocated to each party.

2. The information required by paragraph (1) shall be published on the Internet annually, maintained as long as the private arbitration company remains in business, and be available for free inspection and download.

3. The information required by paragraph (1) shall apply to any consumer arbitration that is not completed on January 1, 2015 or is commenced after that date. Online reports must be published on February 1 of each year, covering the prior calendar year.

SECTION 4. EFFECTIVE DATE

This law shall take effect on July 1, 20XX.

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