Mass arbitration
Mass arbitration is when many people with the same complaint each file their own arbitration demand against one company at the same time.
Also called: mass arbitrations, mass arbitration demands, coordinated arbitration
Mass arbitration is when many people with the same complaint each file their own arbitration demand against one company at the same time.
What it means
Mass arbitration is a tactic in which many people with similar claims each file their own arbitration demand against the same company. A demand is the paper that starts an arbitration. The claimants often use the same or coordinated lawyers and file around the same time.
It turns an arbitration clause around. The company's terms said disputes must be handled one by one, so they arrive one by one, by the thousands. In consumer cases, the company often has to pay most of the filing and arbitrator fees for each case, and those costs add up fast. That pressure can push the company toward a deal for everyone who filed.
Arbitration providers have responded. The American Arbitration Association and JAMS each publish special rules or procedures for mass arbitrations, including a neutral who handles shared issues such as which demands belong together. It is different from a class action: only people who sign up and file are part of it, and there is no court-approved class notice.
What it means for you
Mass arbitration can be a way to pursue a claim if you are bound by a class action waiver, but it is not a class settlement. You usually take part by signing up with a law firm that is organizing one, and each person's case is separate. Payment usually depends on the group deal the firm reaches, and the firm's fee comes out of it, so read the fee agreement first. Check the firm before sharing personal details, and be wary of any site that wants money up front. If a company has already settled a class action that covers you, file that claim with the settlement administrator instead.
Example
Say a ride app's terms require individual arbitration. A law firm signs up 5,000 riders who were charged the same undisclosed fee and files 5,000 separate demands on the same day. The app now faces fees for every case. The parties negotiate a group deal that sets a per-rider amount, and riders who signed up with the firm receive their share under it. Riders who never signed up are not covered by that deal.
FAQ
No. In a class action, a court certifies a group and a settlement covers everyone who fits the class definition. In a mass arbitration, each person files a separate arbitration demand, so only the people who signed up are part of it.
Usually through a law firm that is organizing one. You would sign an agreement with the firm, and it files your demand. Read the fee terms and check the firm and the company before sharing personal information.
Related terms
- Mass Arbitration Rules & Fees (American Arbitration Association)
- Mass Arbitration Procedures and Guidelines, effective May 1, 2024 (JAMS)
- Consumer Arbitration Minimum Standards (JAMS)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.