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

 

HB5410LRB104 19283 JRC 32729 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Rights
5Against Forced Arbitration Act.
 
6    Section 5. Rights of an Illinois consumer. A seller may
7not require an Illinois consumer to agree to a provision that
8would do either of the following:
9    (1) require the Illinois consumer to arbitrate outside of
10Illinois for a claim arising in Illinois for the purchase of
11consumer goods or services; or
12    (3) require the Illinois consumer to arbitrate a
13controversy arising in Illinois under the substantive law of a
14state other than Illinois.
15    (c) Any provision of a contract that violates this Section
16is voidable by the Illinois consumer, and if a provision is
17rendered void at the request of that consumer, the matter
18shall be adjudicated in Illinois and Illinois law governs the
19dispute.
20    (d) In addition to injunctive relief and any other
21remedies available, a court may award a consumer who is
22enforcing rights under this Act reasonable attorney's fees
23incurred in enforcing those rights.

 

 

HB5410- 2 -LRB104 19283 JRC 32729 b

1    (e) For purposes of this Section, adjudication includes
2litigation and arbitration.
 
3    Section 10. Arbitration fees. In an employment or consumer
4arbitration that requires, either expressly or through
5application of State or federal law or the rules of the
6arbitration provider, that the drafting party pay certain fees
7and costs during the pendency of an arbitration proceeding, if
8the fees or costs required to continue the arbitration
9proceeding are not paid within 30 days after the due date, the
10drafting party is in material breach of the arbitration
11agreement, is in default of the arbitration, and waives its
12right to compel the employee or consumer to proceed with that
13arbitration as a result of the material breach.