Expert, diverse arbitrators are needed to decide consumer disputes.
It is more important than ever to have arbitrators experienced in consumer law deciding consumer arbitrations. The nuances of consumer claims require arbitrators who are familiar with modern technologies and how people interact with them, as well as the law governing those interactions. Arbitrators who educate themselves and interact with these technologies are more likely to serve the parties and the process better than those arbitrators who rely on an assistant to “work the computer.” A roster of arbitrators should also reflect the diversity of the population served to help ensure fair outcomes. Thirty-nine percent of those on the AAA-ICDR’s consumer roster are women and/or people of color, with 39 percent of appointments going to panelists from that group.
Transparency about consumer arbitration cases and outcomes is important.
The AAA-ICDR provides information about our cases in several forms. Each quarter, we update our Consumer and Employment Arbitration Statistics Report, which shows case data for all consumer matters closed within the last five years. This report does not show the consumer party’s name but contains information about the opposing party, arbitrator, and case outcome, as well as other important data. We also maintain a quarterly report on arbitrator demographic data. Both of these reports are free and available to the public.
In addition to these reports, the AAA-ICDR anonymizes and provides for publication of consumer awards. These awards are available via legal research sites and contain the identity of the arbitrator as well as the text of the award.
Virtual hearings are here to stay and have clear benefits for consumer disputes.
The COVID pandemic shifted much of our lives online, and consumer arbitration was not exempt. Virtual hearings have become the norm in our cases, even as the world has returned to in-person activities.
The popularity of virtual hearings seems to indicate that most parties have grown comfortable presenting their cases via those platforms and that arbitrators are comfortable hearing cases in that manner. Virtual hearings also improve access to justice, allowing parties to attend from a comfortable and familiar location without paying for travel costs, with electronic management of evidence, and with less disruption to their work and family obligations.
Technology will continue to enhance the dispute resolution process for consumers.
Online Dispute Resolution (ODR) could be the future of resolving consumer disputes. Online Dispute Resolution can be used as a step in a dispute resolution program and incorporates both binding and nonbinding processes. Various successful ODR tools already resolve over sixty million cases per year and could serve as the model for new platforms to be implemented on a broader scale.
Artificial intelligence is already impacting dispute resolution, with new tools and services appearing frequently. Parties can build a clause with the AAA-ICDR’s ClauseBuilderAI, edit drafts and analyze documents with GenAI tools like ChatGPT or Claude, and make use of AI transcription services for their hearings. While some AI tools are priced for mid-sized or large law firms, the capabilities of more widely available platforms continue to increase while the cost remains relatively low for an individual subscription. Free platforms also continue to advance, potentially increasing access to justice.
Consumer arbitration has evolved significantly, reflecting the complexities and technological advancements of modern disputes. The AAA-ICDR’s adaptation to these changes, through the embrace of virtual hearings, addressing of emerging technology disputes, and upholding of procedural safeguards, helps to ensure a fair and efficient process. With the growing importance of an expert and diverse group of arbitrators, transparency in case outcomes, and the integration of technology such as ODR and AI tools, the future of consumer arbitration is poised to offer even greater accessibility and effectiveness. These advancements not only uphold the fundamental principles of fairness and due process but also enhance the efficiency and adaptability of the arbitration system, ultimately benefiting all parties involved.