Consumer Redress in the United States

Abstract

This chapter provides a snapshot of consumer redress processes in the United States (“U.S.”), and suggests policy reforms building on advances in the European Union (“E.U.”). The U.S. traditionally has been distinct in its allowance for class relief and other judicial action as the primary means for consumers to pursue remedies in B2C transactions. However, these traditional American remedies processes have diminished due to the strict enforcement of pre-dispute arbitration clauses and other restrictions on class actions in the U.S. Furthermore, U.S. small claims court and credit card chargeback procedures are limited and outdated, while emerging online complaint and dispute resolution processes remain largely unregulated. This leaves many consumers without meaningful access to remedies when they experience purchase problems. Accordingly, the chapter will suggest ideas for regulatory reforms building on the E.U. model for ODR aimed to expand consumers’ access to remedies with respect to their small dollar claims.

Keywords: Arbitration, ADR, ODR, Consumer Redress, Complaint Handling, Small ClaimsKey Words: contracts, consumer protection, dispute resolution, law and society, remedies, e-contracts, sales, consumer contracts, e-Commerce, ADR, ODR, online dispute resolution, international law, UNCITRAL, international disp

JEL Classification: K12, K40, K41, K00, K29, K20, K30, K10, K39, P45, P46, O31