ARBITRATION CLAUSES-RIGHTS

Illinois General Assembly - Full Text of HB5410

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HB5410 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5410

Introduced 2/13/2026, by Rep. Kelly M. Cassidy

SYNOPSIS AS INTRODUCED:

New Act

Creates the Rights Against Forced Arbitration Act. Provides that a
seller may not require an Illinois consumer to agree to a provision that
would do either of the following: (1) require the Illinois consumer to
arbitrate outside of Illinois for a claim arising in Illinois for the
purchase of consumer goods or services; or (2) require the Illinois
consumer to arbitrate a controversy arising in Illinois under the
substantive law of a state other than Illinois. Provides that any
provision of a contract that violates the Act is voidable by the Illinois
consumer, and if a provision is rendered void at the request of that
consumer, the matter shall be adjudicated in Illinois and Illinois law
governs the dispute. Provides that in addition to injunctive relief and
any other remedies available, a court may award a consumer who is enforcing
rights under this Act reasonable attorney's fees incurred in enforcing
those rights.
LRB104 19283 JRC 32729 b

A BILL FOR

HB5410
LRB104 19283 JRC 32729 b
1

AN ACT concerning civil law.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
Rights
5
Against Forced Arbitration Act.

6

Section 5.
Rights of an Illinois consumer.
A seller may
7
not require an Illinois consumer to agree to a provision that
8
would do either of the following:
9

(1) require the Illinois consumer to arbitrate outside of
10
Illinois for a claim arising in Illinois for the purchase of
11
consumer goods or services; or
12

(3) require the Illinois consumer to arbitrate a
13
controversy arising in Illinois under the substantive law of a
14
state other than Illinois.
15

(c) Any provision of a contract that violates this Section
16
is voidable by the Illinois consumer, and if a provision is
17
rendered void at the request of that consumer, the matter
18
shall be adjudicated in Illinois and Illinois law governs the
19
dispute.
20

(d) In addition to injunctive relief and any other
21
remedies available, a court may award a consumer who is
22
enforcing rights under this Act reasonable attorney's fees
23
incurred in enforcing those rights.

HB5410
- 2 -
LRB104 19283 JRC 32729 b
1

(e) For purposes of this Section, adjudication includes
2
litigation and arbitration.

3

Section 10.
Arbitration fees.
In an employment or consumer
4
arbitration that requires, either expressly or through
5
application of State or federal law or the rules of the
6
arbitration provider, that the drafting party pay certain fees
7
and costs during the pendency of an arbitration proceeding, if
8
the fees or costs required to continue the arbitration
9
proceeding are not paid within 30 days after the due date, the
10
drafting party is in material breach of the arbitration
11
agreement, is in default of the arbitration, and waives its
12
right to compel the employee or consumer to proceed with that
13
arbitration as a result of the material breach.

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