Bill > S00926

This bill amends the New York General Business Law to establish new transparency and conflict of interest requirements for private arbitration organizations that handle consumer arbitrations. Specifically, any private arbitration organization involved in 50 or more consumer arbitrations per year must collect and publicly publish detailed information about these arbitrations, including the names of parties, dispute type, consumer location, whether the consumer prevailed, attorney information, arbitration dates, disposition type, claim amounts, and arbitrator details. The bill also prohibits arbitration organizations from administering consumer arbitrations if they or the parties have significant financial interests in each other, defining a financial interest as ownership of more than 1% equity or a relationship valued over $1,500. The reporting requirements will begin in January 2027 and do not apply to labor union arbitrations or disputes between consumers. The bill allows the New York Attorney General to seek injunctions and impose civil penalties up to $2,000 for violations, and it also permits individual consumers to bring legal action if they are injured by a violation. The law will take effect 180 days after becoming law, providing arbitration organizations time to prepare for compliance.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S926