From the Aug 6, 2010 Edition of the Scarborough Leader

Law helps protect consumers

Most people are unaware, but mandatory arbitration clauses are often found in the fine print of many contracts for credit cards, cellular phone and car purchases.

They require consumers to settle disputes outside of court through an arbitrator, which often are harmful to the consumer, who is not knowledgeable of the arbitration process and cost.

Thanks to strong support from both the House and Senate, I was able to help pass a law that provides consumers added protections and more information during the arbitration process.

Starting Jan. 1, those who conduct consumer arbitrations will be required to have a website to provide consumers information such as the cost and fees of arbitration, types of disputes they have been involved in, if the consumer was the prevailing party, if attorneys were involved and the amount of an award given.

This new law will not put any pressure on businesses, small or large.

Instead, it forces the arbitrator to be the one to provide information listed by the attorney general’s office that includes the name of the non-consumer party, if that party is a corporation or other business entity, type of dispute involved, whether the consumer was the prevailing party and amount of their fees for the arbitration and the percentage of the arbitrator’s fees allocated to each party.

Strong consumer protection laws, such as this one, instill confidence in consumers to spend and invest money safely in the economy.

State Rep. Sean Flaherty
District 127