An Act To Prohibit Predispute Mandatory Binding Arbitration Clauses in Consumer Contracts
Maine Legislature, Session 124, LD 1256
Committee Amendment CA_A_H715 (House)
Amends: 10 MRSA §1391, 10 MRSA §1392, 10 MRSA §1393, 10 MRSA §1394

COMMITTEE AMENDMENT "/1,, to H.P. 875, L.D. 1256, Bill, "An Act To 
Prohibit Predispute Mandatory Binding Arbitration Clauses in Consumer Contracts" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Provide Protections for Consumers Subject to Mandatory Arbitration 
Clauses' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 
MRSA §1391, sub-§1, as enacted by PL 2007, c. 250, § 1 and 
amended by c. 273, Pt. B, §6, is repealed. 
Sec. 2. 10 MRSA §1391, sub-§2, as enacted by PL 2007, c. 250, § 1, is amended 
to read: 
2. Consumer. 
"Consumer" means an individual who uses, purchases, acquires, 
attempts to purchase or acquire or is offered or furnished credit or a loan goods or 
services, other than insurance, for personal, family or household purposes. 
Sec. 3. 10 MRSA §1391, sub-§4, as enacted by PL 2007, c. 250, § 1, is amended 
to read: 
4. Consumer arbitration agreement. "Consumer arbitration agreement" means a 
standard contract with a consumer concerning the use of, purchase of, acquisition of, 
attempt to purchase or acquire, offer of or furnishing of credit or a loan goods or services, 
other than insurance, for personal, family or household purposes. 
Sec. 4. 10 MRSA §1391, sub-§4-A is enacted to read: 
4-A. Financial interest. "Financial interest" means holding a position in a business 
as an officer, director, trustee, member or pm1ner or any position in management or 
ownership of more than 5% interest in the business. 
Sec. 5. 10 MRSA §1392, as enacted by PL 2007, c. 250, § 1, is repealed. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT'~ " to H.P. 875, L.D. 1256 
Sec. 6. 10 MRSA §1393 is enacted to read: 
§1393. Consumer arbitration agreements 
1. Limitation on agreements. A consumer arbitration agreement not allowed under 
federal law is void and unenforceable. 
2. Costs and fees. In a provider's initial notice or communication to a consumer, the 
provider must clearly and conspicuously disclose the estimated expenses of any 
arbitration, including: 
A. The filing fee; 
B. The average daily cost for an arbitrator and hearing room; 
C. Any other charge that an arbitrator or provider may assess; and 
D. The proportion of expenses listed under this subsection borne by each party if the 
consumer prevails and if the consumer does not prevail. 
An expense required to be disclosed under this subsection does not include attorney's 
fees. A person required to disclose an expense under this subsection does not violate this 
subsection when an actual expense exceeds an estimate if the estimate was reasonable 
and made in good faith. 
3. Violation. A violation of subsection 2 does not render the consumer arbitration 
agreement unenforceable but may be considered by a court in a determination of whether 
the agreement is unconscionable or otherwise unenforceable under another law. If a 
provider violates subsection 2, a person or the Attorney General may request a court of 
competent jurisdiction to enjoin the provider in violation from violating subsection 2 in a 
subsequent consumer arbitration. A provider found to be in violation of this section or 
that conforms to this section after an action is commenced is liable for the court costs and 
reasonable attorney's fees of the party bringing the action. 
Sec. 7. 10 MRSA §1394 is enacted to read: 
§1394. Arbitration service providers 
1. Providers of consumer arbitrations. Beginning JanualY 1, 2011, a provider 
shall collect, publish at least quarterly and make available to the public in a computer-
searchable format, which must be available on the publicly accessible website of the 
provider, if any, and on paper upon request, all of the following information for each 
consumer arbitration with which the provider was involved: 
A. The name of the non consumer party, if the nonconsumer party is a corporation or 
other business entity; 
B. The type of dispute involved, such as goods, banking, wireless communications, 
health care, debt collection and employment; 
C. If the dispute involved employment, the amount of the employee's annual wage 
divided into the following ranges: 
(1) Less than $100,000; 
(2) From $100,000 to $250,000; or 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 875, L.D. 1256 
(3) More than $250,000; 
D. Whether the consumer was the prevailing party; 
E. The number of times a business that is a party to the consumer arbitration had 
previously been a party to a mediation or arbitration in which the provider was 
involved; 
F. Whether the consumer was represented by an attorney; 
G. The dates the provider received the demand for arbitration, the arbitrator was 
appointed and the disposition of the arbitration was rendered; 
H. The type of disposition of the arbitration, including withdrawal, abandonment, 
settlement, award after hearing, award without hearing, default and dismissal without 
hearing; 
1. The amount of the claim and the amount of any award or relief granted; 
J. The name of the arbitrator, the amount of the arbitrator's fee for the arbitration and 
the percentage of the arbitrator's fee allocated to each party; and 
K. Whether the provider has or within the preceding year had a financial interest in a 
party or the legal representation of a party in the arbitration or a party or legal 
representative of a party in the arbitration has or within the preceding year had a 
financial interest in the provider. 
Once the information is published and made available, it must remain available for at 
least 5 years. If the information required by this subsection is available in a computer-
searchable format and downloadable for free on the provider's publicly accessible 
website, the provider may charge a requestor for the cost of copying the information on 
paper. If the information required by this subsection is not available for free on the 
provider's publicly accessible website, the provider may not charge a requestor for the 
information in paper form. 
2. 
Notice to Attorney General; linles on website. 
A provider that provides 
arbitration services in this State shall notifY the consumer protection division of the 
Office of the Attorney General in writing of any website upon which the information 
required under subsection 1 is posted. The provider shall inform the consumer protection 
division of the Office of the Attorney General if it discontinues the use of any website 
previously repOJied. The Attorney General shall include the links to the providers on the 
Attorney General's publicly accessible website. 
3. Liability in providing information. A provider has no liability for collecting, 
publishing or distributing the information required under subsection 1.' 
SUMMARY 
This amendment replaces the bill. 
The amendment amends the current law concerning consumer arbitration agreements. 
It amends the definition of "consumer" and "consumer arbitration agreement" to cover all 
goods and services, other than insurance, for personal, family or household purposes. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 875, L.D. 1256 
The amendment defines "financial interest" to mean holding a position in a business 
as an officer, director, trustee, member or partner or any position in management or 
ownership of more than 5% interest in the business. It is used in the context of reporting 
consumer arbitrations. 
The amendment repeals the existing requirement that arbitration providers that 
provide arbitration services related to credit or loans for personal, family or household 
purposes report to the Superintendent of Consumer Credit Protection within the 
Department of Professional and Financial Regulation. 
The amendment provides that a consumer arbitration agreement that is not allowed 
under federal law is void and unenforceable. 
The amendment requires a provider of consumer arbitration to disclose the estimated 
expenses of any arbitration. 
The amendment requires repoliing by arbitration providers in order to make available 
information about consumer arbitrations occurring in this State. The language is modeled 
on the California requirements. Starting January 1, 2011, this amendment requires 
providers of consumer arbitrations to publish on publicly accessible websites specific 
information about consumer arbitrations conducted in this State. It requires providers to 
provide written notice to the consumer protection division of the Office of the Attorney 
General concerning the websites on which the information is posted. The Attorney 
General will provide links to the websites. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 02/2411 0 Mac 
LD 1256 
LR 1377(02) 
An Act To Prohibit Predispute Mandatory Binding Arbitration Clauses in Consumer Contracts 
Fiscal Note for Bill as Amended by Committee Amendment "A" 
Committee: Judiciary 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue increase - General Fund 
Correctional and Judicial Impact Statements 
Increases the number of civil suits. 
The collection of additional filing fees may also increase General Fund revenue by minor amounts. 
Fiscal Detail and Notes 
The additional costs to the Department of the Attorney General can be absorbed utilizing existing budgeted resources. 
LR1377(02) - Fiscal Note - Page 1 of 1