S 1652 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 1652CommentsClose CommentsPermalink

To amend title 9 of the United States Code to prohibit mandatory arbitration clauses in contracts for mobile service.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

October 4, 2011CommentsClose CommentsPermalink

Mr. BLUMENTHAL (for himself, Mr. FRANKEN, and Mr. WHITEHOUSE) introduced the following bill; which was read twice and referred to the Committee on the JudiciaryCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend title 9 of the United States Code to prohibit mandatory arbitration clauses in contracts for mobile service.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Consumer Mobile Fairness Act of 2011’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

Congress finds the following:CommentsClose CommentsPermalink





(1) Consumer use of mobile services has dramatically increased over the last 2 decades, with many consumers relying primarily or solely on a mobile device for voice, data, and Internet use.CommentsClose CommentsPermalink





(2) Consumer disputes of mobile services agreements often involve small amounts in controversy.CommentsClose CommentsPermalink





(3) Disputes involving small amounts in controversy are well-suited for class litigation, as class litigation allows a more efficient process than numerous similar individual actions, distributes the costs of litigation across a large pool of plaintiffs, and may present a stronger incentive for a defendant to cease or change harmful behavior.CommentsClose CommentsPermalink





(4) Many contracts for mobile services contain clauses that require aggrieved consumers to waive their right to litigate as an individual or class and instead submit to binding arbitration of any future dispute.CommentsClose CommentsPermalink





(5) Several States have found, through legislation or case law, that the clauses described in paragraph (4) are unconscionable or unenforceable when they bar class litigation.CommentsClose CommentsPermalink





(6) On April 27, 2011, the Supreme Court, in its decision in AT&T Mobility, LLC v. Concepcion, 563 U.S. X, slip op. (2011), held that States must enforce mandatory binding arbitration clauses even if they bar class litigation.CommentsClose CommentsPermalink





(7) The Concepcion decision restricts consumers’ ability to resolve disputes against providers of mobile services.CommentsClose CommentsPermalink

SEC. 3. ARBITRATION OF MOBILE SERVICE DISPUTES.

(a) In General- Title 9, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink

‘CHAPTER 4--ARBITRATION OF COMMERCIAL MOBILE SERVICE DISPUTES

‘Sec.CommentsClose CommentsPermalink





‘401. Definitions.CommentsClose CommentsPermalink





‘402. Validity and enforceability.CommentsClose CommentsPermalink

‘SEC. 401. DEFINITIONS.

‘In this chapter--CommentsClose CommentsPermalink





‘(1) the term ‘commercial mobile service’ has the same meaning as in section 332 of the Communications Act of 1934 (47 U.S.C. 332);CommentsClose CommentsPermalink





‘(2) the term ‘covered individual’ means an individual who acquires, or attempts to acquire, commercial mobile service for personal, family, or household use;CommentsClose CommentsPermalink





‘(3) the term ‘mobile broadband Internet access service’ means a retail service by wire or radio that provides the capability to transmit data and receive data from the Internet, including any capabilities that are incidental to and enable the operation of a communications service, that services end users primarily using mobile stations;CommentsClose CommentsPermalink





‘(4) the term ‘mobile service’ means commercial mobile service or mobile broadband Internet access service; andCommentsClose CommentsPermalink





‘(5) the term ‘pre-dispute arbitration agreement’ means any agreement to arbitrate a dispute that had not yet arisen at the time of the making of the agreement.CommentsClose CommentsPermalink

‘SEC. 402. VALIDITY AND ENFORCEABILITY.

‘(a) In General- Notwithstanding any other provision of law, a predispute arbitration agreement between a covered individual and a provider of mobile service shall not be valid or enforceable.CommentsClose CommentsPermalink





‘(b) Applicability- An issue as to whether this chapter applies to an arbitration agreement shall be determined under Federal law. The applicability of this chapter to an agreement to arbitrate shall be determined by a court, rather than an arbitrator, irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing the agreement.’.CommentsClose CommentsPermalink





(b) Technical and Conforming Amendments-CommentsClose CommentsPermalink





(1) IN GENERAL- Title 9 of the United States Code is amended--CommentsClose CommentsPermalink





(A) in section 2, by inserting ‘or as otherwise provided in chapter 4’ before the period at the end;CommentsClose CommentsPermalink





(B) in section 208--CommentsClose CommentsPermalink





(i) in the section heading, by striking ‘Chapter 1; residual application’ and inserting ‘Application’; andCommentsClose CommentsPermalink





(ii) by adding at the end the following: ‘This chapter applies to the extent that this chapter is not in conflict with chapter 4.’; andCommentsClose CommentsPermalink





(C) in section 307--CommentsClose CommentsPermalink





(i) in the section heading, by striking ‘Chapter 1; residual application’ and inserting ‘Application’; andCommentsClose CommentsPermalink





(ii) by adding at the end the following: ‘This chapter applies to the extent that this chapter is not in conflict with chapter 4.’.CommentsClose CommentsPermalink





(2) TABLE OF SECTIONS-CommentsClose CommentsPermalink





(A) CHAPTER 2- The table of sections for chapter 2 of title 9, United States Code, is amended by striking the item relating to section 208 and inserting the following:CommentsClose CommentsPermalink





‘208. Application.’.CommentsClose CommentsPermalink





(B) CHAPTER 3- The table of sections for chapter 3 of title 9, United States Code, is amended by striking the item relating to section 307 and inserting the following:CommentsClose CommentsPermalink





‘307. Application.’.CommentsClose CommentsPermalink





(3) TABLE OF CHAPTERS- The table of chapters for title 9, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink

401’.CommentsClose CommentsPermalink

SEC. 4. EFFECTIVE DATE.

This Act, and the amendments made by this Act shall take effect on the date of enactment of this Act and shall apply with respect to any dispute or claim that arises on or after the date of enactment of this Act.CommentsClose CommentsPermalink