On June 28, 2019, the U.S. Court of Appeals for the Ninth Circuit weighed in on consumer arbitration agreements and found that part of the arbitration clause in Blair v. Rent-A-Center, Inc., WL 2701333 (9th Cir. June 28, 2019) (alleging claims under California law relating to rent-to-own payment amounts) was unenforceable because it waived the right to seek public injunctive relief in any forum. The Ninth Circuit reached this decision despite the U.S. Supreme Court’s decisions in cases such as AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011), which found that the Federal Arbitration Action (FAA) preempted California’s rule prohibiting class action waivers in consumer arbitration agreements.
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