National Arbitration Forum to cease credit card and consumer arbitration under agreement.
Just one week after the Minnesota Attorney General filed suit against National Arbitration Forum, the two sides have settled. As part of the agreement, National Arbitration Forum will no longer perform arbitration for credit card and other consumer arbitration.
National Arbitration Forum is one of the two largest arbitrators for domain name disputes under UDRP, but the case did not involve domain arbitration. The company can continue to perform domain name arbitration proceedings.
The Minnesota Attorney General alleged the company performed arbitration for 214,000 consumer and credit card disputes in 2006. Pulling out of this market must be a big hit to the company, but the company claims that consumer disputes aren’t a good business anymore, citing increasing regulatory pressure and the economy.
National Arbitration Forum did not admit wrongdoing.