Bill > A03318

This bill addresses transparency and conflict of interest in consumer arbitration by requiring private arbitration organizations that handle 50 or more consumer arbitrations annually to publicly disclose detailed information about these proceedings. Specifically, the bill mandates that these organizations create a publicly accessible, computer-searchable database containing information such as the names of non-consumer parties, consumer location, dispute type, arbitration outcomes, arbitrator fees, and whether the consumer was represented by an attorney. The bill also prohibits arbitration organizations from administering consumer arbitrations if they or the parties have significant financial interests in each other within the past year, defining a "financial interest" as ownership of more than 1% equity or a relationship as a director or active participant. The legislation provides enforcement mechanisms, allowing the New York Attorney General to seek injunctions and impose civil penalties up to $2,000 for violations, and enabling individuals who have been injured by such violations to bring their own legal actions. The bill will take effect 180 days after becoming law and specifically excludes labor union arbitrations and disputes between consumers from its provisions, with full implementation set to begin on January 1, 2027.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A3318