The American Arbitration Association (AAA) has announced revisions to its Consumer Arbitration Rules effective May 1, 2025. The revised rules can be found here and the AAA’s announcement of the rules here. Prior to amending the rules, AAA requested public comments on its proposed changes, soliciting ways to improve the rules while ensuring fairness to all participants in the arbitration process. Although not every rule was revised, there are some significant changes.

Documents-Only Cases. The AAA decided not to adopt the initial proposal to increase the documents-only threshold from $25,000 to $50,000 in consumer cases. Instead, the arbitrator is given greater authority to direct that a case be decided on a documents-only basis. Under the new rules, any case in which $25,000 or less is at stake will be resolved solely on documents submitted by the parties, unless “the arbitrator decides that a hearing is necessary.” Under the prior consumer rules, a hearing would be held if requested by either party.

Dispositive Motions. Obtaining relief via dispositive motion in arbitration has always been difficult, and the amended rules include new language intended to dissuade arbitrators from authorizing the filing of dispositive motions. The rules state that in considering whether to allow dispositive motions, the arbitrators must “consider the time and cost associated with the briefing of a dispositive motion in deciding whether to allow any such motion.”

Expanded Discovery. Previously, the rules allowed only for the “exchange of information” and did not expressly reference depositions, interrogatories or other discovery tools. The revised rules explicitly reference the arbitrator’s authority to order other types of discovery beyond the exchange of documents, including interrogatories and depositions.

Claims Consolidation. The AAA can now “administer multiple claims filed by the same party arising out of the same contract as a single case.” Additionally, AAA can “require that multiple claims filed by the same party arising out of separate contracts be filed and administered as individual cases.” The rules provide that the AAA’s exercise of discretion is “subject to the final determination of an arbitrator once appointed.”

Which Agreement Applies. The AAA often sees disputes regarding which agreement applies. Although it initially proposed applying the contract supplied by the filing party, the final rule provides that the AAA will first consider the parties’ comments and make an administrative determination, subject to a final determination by the arbitrator.

Virtual Hearings. The prior rules allowed the AAA to determine the locale of an evidentiary hearing if the parties could not agree on location and did not give an arbitrator discretion to order a virtual hearing. AAA has now modified its rule to provide for virtual hearings as the default or “by other means as approved by the arbitrator unless agreed to by the parties.” Alternatively, upon a party’s application, the arbitrator can decide an in-person hearing is required.

Sanctions. The amended rules expressly authorize an arbitrator to impose “appropriate sanctions” to enforce orders and the AAA rules.

Appeals. Where a consumer arbitration agreement allows an appeal to a three-judge panel, the rules permit such appeals provided that the agreement’s appellate procedures comply with the AAA Consumer Due Process Protocol. Additionally, the rules make clear that the AAA’s consumer arbitration fee schedule applies.

AAA Consumer Clause Registry. The rules change several processes relating to registration of consumer clauses with the AAA. As before, the AAA will register arbitration clauses if it concludes the clauses comply with the AAA Consumer Due Process Protocol. In the amended rules, the AAA states that an administrative finding of compliance is not final and can be revisited by arbitrators in any subsequent case. In addition, once a clause is registered, “[i]f a business declines to pay the annual Registry fee, . . . the AAA will decline to administer consumer arbitrations arising from that arbitration agreement” and “[c]harging an expedited review fee as an alternative is not permissible.”

Consumer Mediation Procedures. As announced here, the AAA launched its Consumer Mediation Procedures on April 1, 2025. Those procedures are now incorporated into the rules.

Our Take

The amended AAA Consumer Arbitration Rules and Mediation Procedures present significant changes in the ever changing world of arbitration. Although the rules do not contain any specific changes addressing mass arbitration threats, businesses with consumer arbitration agreements should review the new rules to determine if their consumer arbitration agreements require any amendments and how these changes will impact individual disputes.