On May 1, 2025, the American Arbitration Association’s (AAA) new amendments to the Consumer Arbitration Rules officially went into effect. While not a complete overhaul, the revisions impact many of the existing rules while also adding numerous new provisions. AAA states that the purpose of the revisions is to increase transparency, fairness, efficiency, accessibility, ethics, and conduct. Here is a run-down of all the key changes and revisions in the Consumer Rules.
Key Changes
Judicial Intervention Expansion
Whereas a party seeking judicial intervention at the outset of arbitration would previously prompt a suspension of arbitration for 30 days under the previous rules, the new rules call for a suspension of 90 days “to permit the party to obtain an order regarding the arbitration from the court.”
Documents-Only Cases
Under the previous rules, matters that did not involve any claim over $25,000 could be resolved by desk arbitration (determination on the documents only, without a hearing), though either party could request a hearing. Under the 2025 revisions, these matters will be resolved through desk arbitration “unless otherwise agreed by the parties or determined by the arbitrator.” In other words, a single party can no longer prompt a hearing on its own.
Virtual Hearings: The New Normal
With the new Rule R-22, all hearings throughout arbitration will be held virtually by default or by other means approved by the arbitrator. Hearings will only be conducted in person if a party requests an in-person hearing and the arbitrator grants that request.
Less Dispositive Motions
Previously, an arbitrator could consider a dispositive motion if the moving party demonstrated a substantial likelihood of success or that it would dispose of or narrow relevant issues. Under the new rules, however, arbitrators are now required to also consider “the time and cost associated with the briefing of a dispositive motion” before deciding whether to allow the motion at all. In practice, this may provide arbitrators with additional grounds to decline to hear such motions.
Expanded Role of Arbitrator in Discovery
The previous rules provided a limited reference to discovery, only allowing an arbitrator to prompt the exchange of “specific documents or other information” and witness identities, “unless an arbitrator determines further information exchange is needed to provide for a fundamentally fair process.” The revised rules expand the types of discovery available, explicitly allowing the arbitrator to manage “any necessary exchange of information among the parties, including depositions, interrogatories, document production, or by other means.”
Declining Future Arbitrations for Failure to Pay Fees
If a business violates the arbitration rules by failing to pay necessary fees, AAA may decline to administer future arbitrations involving the business, in addition to the already-in-place potential for removal from the Consumer Clause Registry and potential suspension of arbitration.
Sanctions
The new amendments to AAA’s Consumer Rules allow an arbitrator to order sanctions against a party that fails to comply with the rules or the arbitrator’s orders, if requested by another party. Any party against whom sanctions are ordered will have an opportunity to respond prior to a final determination on sanctions.
Appeals
The 2025 revisions include a provision that AAA will administer an appellate arbitration process if the relevant arbitration agreement allows for an appeal, complies with AAA’s Consumer Due Process Protocol, and includes allocation of filing fees and arbitrator compensation in accordance with AAA’s Consumer Arbitration Fee Schedule.
Consumer Mediation
In addition to the rules governing the arbitration process, AAA has also published its new Consumer Mediation Procedures, which can be invoked by inclusion in the parties’ arbitration agreement or by agreement of the parties to an ongoing dispute.
Opportunity to Update Arbitration Agreements
The 2025 Consumer Arbitration Rules govern any consumer arbitration that meets the administrative filing requirements for an arbitration demand or was submitted by agreement to AAA on or after May 1, 2025. Many of the 2025 revisions seek to streamline and clarify the arbitration process. The new rules present a ripe opportunity for businesses to update the language in their arbitration agreements, especially if they wish to take advantage of the new rules governing appeals and consumer mediation.
