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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1652 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1652

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

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 4, 2011

     Mr. Blumenthal (for himself, Mr. Franken, and Mr. Whitehouse) 
introduced the following bill; which was read twice and referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Mobile Fairness Act of 
2011''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (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.
            (2) Consumer disputes of mobile services agreements often 
        involve small amounts in controversy.
            (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.
            (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.
            (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.
            (6) On April 27, 2011, the Supreme Court, in its decision 
        in AT&T Mobility, LLC v. Concepcion, 563 U.S. _, slip op. 
        (2011), held that States must enforce mandatory binding 
        arbitration clauses even if they bar class litigation.
            (7) The Concepcion decision restricts consumers' ability to 
        resolve disputes against providers of mobile services.

SEC. 3. ARBITRATION OF MOBILE SERVICE DISPUTES.

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

     ``CHAPTER 4--ARBITRATION OF COMMERCIAL MOBILE SERVICE DISPUTES

``Sec.
``401. Definitions.
``402. Validity and enforceability.

``SEC. 401. DEFINITIONS.

    ``In this chapter--
            ``(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);
            ``(2) the term `covered individual' means an individual who 
        acquires, or attempts to acquire, commercial mobile service for 
        personal, family, or household use;
            ``(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;
            ``(4) the term `mobile service' means commercial mobile 
        service or mobile broadband Internet access service; and
            ``(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.

``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.
    ``(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.''.
    (b) Technical and Conforming Amendments.--
            (1) In general.--Title 9 of the United States Code is 
        amended--
                    (A) in section 2, by inserting ``or as otherwise 
                provided in chapter 4'' before the period at the end;
                    (B) in section 208--
                            (i) in the section heading, by striking 
                        ``Chapter 1; residual application'' and 
                        inserting ``Application''; and
                            (ii) by adding at the end the following: 
                        ``This chapter applies to the extent that this 
                        chapter is not in conflict with chapter 4.''; 
                        and
                    (C) in section 307--
                            (i) in the section heading, by striking 
                        ``Chapter 1; residual application'' and 
                        inserting ``Application''; and
                            (ii) by adding at the end the following: 
                        ``This chapter applies to the extent that this 
                        chapter is not in conflict with chapter 4.''.
            (2) Table of sections.--
                    (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:

``208. Application.''.
                    (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:

``307. Application.''.
            (3) Table of chapters.--The table of chapters for title 9, 
        United States Code, is amended by adding at the end the 
        following:

``4. Arbitration of mobile service disputes.................     401''.

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.
                                 <all>
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