ATLANTA, GA - Attorney General Chris Carr has sent a letter expressing concern over the treatment of consumers in the mass arbitrations administered by JAMS, the American Arbitration Association, and National Arbitration and Mediation. Recent allegations and complaints indicate that these organizations may have breached the consumer protection laws that the Attorney General's Consumer Protection Division enforces.

Arbitration is a process meant to resolve disputes less formally and expensively than litigation. In mass arbitration, consumers largely lose the right to pursue and resolve their own specific claim and are largely bound by what a third party or attorney obtains through the process.

"Consumers are being treated as nothing more than a number on a spreadsheet, and it's entirely unacceptable," said Carr. "The law is clear, and these organizations should be cautious that they're not enabling the widely reported abuses of consumers. We're committed to protecting Georgians and their hard-earned dollars, and we will work to ensure they don't fall victim to deceitful practices."

In the letter, Carr states that abusive practices in mass arbitration include situations in which law firms purport to represent consumers who:

• Never retained them;
• Were dead or had dubious identities;
• Thought they were signing up for a class action;
• Are already represented by another firm in a separate proceeding involving the same claim; or
• Are not party to the underlying arbitration agreement and have not engaged in a transaction giving rise to the claim.

Carr further discusses allegations in which consumers are not adequately apprised of the arbitration after being signed up through online solicitations or click-through retainer agreements that do not involve meaningful vetting of the prospective client.

One public report revealed that these organizations are actively soliciting third-party investors to finance the business model underpinning their mass arbitration practices. These abusive practices can expose consumers to legal jeopardy if their attorney's conduct breaches the terms of the underlying consumer agreement.

Find a copy of the letter here . For information on whether to trust a social media arbitration solicitation, visit the Attorney General's Consumer Ed website here.