Restoring Statutory Rights Act of 2016

LegislationThe Restoring Statutory Rights Act of 2016, sponsored by Democratic Senator Patrick Leahy, was sent to congressional committee on February 4, 2016 for consideration.

The bill would place restrictions on companies’ use of arbitration clauses in agreements with consumers. Mandatory arbitration clauses have become a common — and controversial — feature of many consumer contracts. In signing agreements with banks, credit card companies, and cellular service providers, consumers frequently agree that they will arbitrate disputes, rather than sue in court.