Case Registration & Payment
The party bringing the CCP Member to arbitration must register the case and agree to pay the arbitration fee, subject to full or partial
Fee Reimbursement (see below).
Fee Reimbursement
Fee Reimbursement is an exclusive feature of the Consumer Confidence Program. If the decision goes against the CCP Member, the arbitrator will direct the CCP Member to pay the winning party's arbitration fee, but only up to the
"amount in controversy" in order to protect against frivolous arbitration.
The
"amount in controversy" is the difference between the CCP Member's pre-arbitration settlement offer and the amount awarded in arbitration. Here are some examples to illustrate.
- Example 1: The customer wants to return an item for a $500 refund. The Member merchant will not allow a return. If the arbitrator rules in the customer's favor, the customer will receive a total award of $699 . . . $500 for the claim plus the full arbitration fee ($199) since the "amount in controversy" was greater than the arbitration fee.
- Example 2: The customer wants to return an item for a $500 refund. Before going into arbitration, the Member merchant offers $400 and the customer refuses. If the arbitrator rules in the customer's favor, the customer will receive a total award of $600 . . . $500 for the claim plus $100 towards the arbitration fee since the "amount in controversy" was only $100 (the difference between the $500 awarded and the $400 offered).
- Example 3: The customer wants to return an item for a $500 refund. Before going into arbitration, the Member merchant offers $400 and the customer refuses. If the arbitrator rules in the customer's favor but only for $400, the customer will receive a total award of just $400 since the "amount in controversy" was zero (the difference between the $400 awarded and the $400 offered).
- Example 4: The customer wants to return an item for a $20 refund. The Member merchant will not allow a return. If the arbitrator rules in the customer's favor, the customer will receive a total award of $40 . . . $20 for the claim plus $20 towards the arbitration fee since the "amount in controversy" was only $20 (the difference between the $20 awarded and the $0 offered).
In all cases, if the Arbitrator rules in favor of the Member or rules in favor of the customer for an amount equal to or less than what the Member offered prior to going into arbitration, the customer receives no reimbursement.
