,,ii #aaeth ,,congress #ast ,session ,s4 #fdg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ae1 #bjag,mr4 ,blumenthal 7for himself1 ,mr4 ,brown1 ,mr4 ,markey1 ,mr4 ,franken1 ,mrs4 ,murray1 ,mr4 ,merkley1 and ,mr4 ,whitehouse7 introduced the following bill2 which was read twice and referred to the ,committee on the ,judiciary ,a ,,bill ,to amend title #i1 ,united ,states ,code1 with respect to arbitration4 #a4 ,short title ,this ,act may be cited as the ,mandatory ,arbitration ,transparency ,act of #bjag4 #b4 ,validity and enforceability of predispute arbitration agreements containing confidentiality clauses 7a7 ,in general ,title #i1 ,united ,states ,code1 is amended by adding at the end the following3 #d ,predispute arbitration agreements containing confidentiality clauses #dja4 ,definitions4#djb4 ,validity and enforceability4 #dja4 ,definitions 7a7 ,in this chapter-- 7#a7 the term civil rights dispute means a dispute-- 7,a7 arising under-- 7i7 the ,constitution of the ,united ,states or the constitution of a ,state2 or 7ii7 a ,federal or ,state statute that prohibits discrimination on the basis of race1 sex1 disability1 religion1 national origin1 or any invidious basis in education1 employment1 credit1 housing1 public accommodations and facilities1 voting1 or any program funded or conducted by the ,federal ,government or a ,state government1 including any statute enforced by the ,civil ,rights ,division of the ,department of ,justice and any statute enumerated in section #fb7;e7 of the ,internal ,revenue ,code of #aihf 7relating to unlawful discrimination72 and 7,b7 in which at least #a party alleging a violation of the ,constitution of the ,united ,states1 a ,state constitution1 or a statute prohibiting discrimination is an individual2 7#b7 the term consumer dispute means a dispute between an individual who seeks or acquires real or personal property1 services1 securities or other investments1 money1 or credit for personal1 family1 or household purposes and the seller or provider of such property1 services1 securities or other investments1 money1 or credit2 7#c7 the term covered confidentiality clause means a provision of a predispute arbitration agreement that1 with respect to an employment dispute1 consumer dispute1 or civil rights dispute1 purports to1 or could be interpreted by a reasonable person to1 prohibit a party to the dispute from-- 7,a7 making a communication in a manner such that the prohibition would violate a ,state or ,federal whistleblower statute2 or 7,b7 reporting or making a communication1 including to any relevant public official1 elected official1 or other ,state or ,federal authority1 about-- 7i7 tortious conduct2 7ii7 otherwise unlawful conduct2 or 7iii7 issues of public policy or public concern2 7#d7 the term employment dispute means a dispute between an employer and employee arising out of the relationship of employer and employee as defined in section #c of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bjc72 and 7#e7 the term predispute arbitration agreement means any agreement to arbitrate a dispute that had not yet arisen at the time of the making of the agreement4 #djb4 ,validity and enforceability 7a7 ,in general 7#a7 ,prohibition on predispute arbitration agreements with confidentiality clauses ,notwithstanding any other provision of this title1 no predispute arbitration agreement shall be valid or enforceable if the agreement contains a covered confidentiality clause4 7#b7 ,exception ,paragraph 7#a7 shall not apply to a predispute arbitration agreement if a party to the agreement can demonstrate a confidentiality interest that significantly outweighs the private and public interest in disclosure4 7b7 ,applicability 7#a7 ,in general ,an issue as to whether this chapter applies to an arbitration agreement shall be determined under ,federal law4 ,the applicability of this chapter to an agreement to arbitrate and the validity and enforceability of an agreement to which this chapter applies shall be determined by a court1 rather than an arbitrator1 irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement4 7#b7 ,collective bargaining agreements ,nothing in this chapter shall apply to any arbitration provision in a contract between an employer and a labor organization or between labor organizations1 except that no such arbitration provision shall have the effect of waiving the right of an employee to seek judicial enforcement of a right arising under a provision of the ,constitution of the ,united ,states1 a ,state constitution1 or a ,federal or ,state statute1 or public policy arising therefrom4 4 7b7 ,technical and conforming amendment ,the table of chapters for title #i1 ,united ,states ,code1 is amended by adding at the end the following3 #d4,predispute arbitration agreements containing confidentiality clauses#dja 4 #c4 ,unfair or deceptive act or practice 7a7 ,definition ,in this section-- 7#a7 the term ,commission means the ,federal ,trade ,commission2 and 7#b7 the terms covered confidentiality clause and predispute arbitration agreement have the meanings given those terms in section #dja of title #i1 ,united ,states ,code1 as added by section #b4 7b7 ,prohibition 7#a7 ,in general ,it shall be unlawful for a person to knowingly offer to another person for ratification a predispute arbitration agreement that contains a covered confidentiality clause4 7#b7 ,exceptions 7,a7 ,confidentiality interest ,paragraph 7#a7 shall not apply to a person that offers a predispute arbitration agreement with a covered confidentiality clause if the person can demonstrate a confidentiality interest that significantly outweighs the private and public interest in disclosure4 7,b7 ,collective bargaining agreements ,paragraph 7#a7 shall not apply with respect to any arbitration provision in a contract between an employer and a labor organization or between labor organizations1 if the arbitration provision does not waive the right of an employee to seek judicial enforcement of a right arising under a provision of the ,constitution of the ,united ,states1 a ,state constitution1 or a ,federal or ,state statute1 or public policy arising therefrom4 7c7 ,enforcement by ,federal ,trade ,commission 7#a7 ,treatment as unfair or deceptive act or practice ,a violation of subsection 7b7 by a person with respect to which the ,commission is empowered under section #e7;a77#b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77#b77 shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section #ah7;a77#a77;,b7 of that ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7#b7 ,powers of ,commission 7,a7 ,in general ,the ,commission shall enforce this section in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this section4 7,b7 ,privileges and immunities ,any person who violates subsection 7b7 shall be subject to the penalties and entitled to the privileges and immunities provided in the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq474 7#c7 ,rulemaking ,the ,commission shall promulgate standards and rules to carry out this section in accordance with section #eec of title #e1 ,united ,states ,code4 7d7 ,civil action 7#a7 ,private right of action ,any person aggrieved by a violation of subsection 7b7 may bring a civil action in an appropriate district court of the ,united ,states4 7#b7 ,remedies ,in an action under paragraph 7#a71 the court may award-- 7,a7 actual damages1 but not less than liquidated damages in an amount equal to #a1jjj2 7,b7 punitive damages2 7,c7 reasonable attorney's fees and other litigation costs reasonably incurred2 and 7,d7 any other preliminary and equitable relief that the court determines appropriate1 including injunctive relief4 #d4 ,effective date 7a7 ,in general ,this ,act1 and the amendments made by this ,act1 shall take effect on the date of enactment of this ,act4 7b7 ,applicability 7#a7 ,validity and enforceability ,chapter #d of title #i1 ,united ,states ,code1 as added by section #b1 shall apply with respect to any dispute or claim that arises on or after the date of enactment of this ,act4 7#b7 ,unfair or deceptive act or practice ,section #c shall apply with respect to any predispute arbitration agreement offered for ratification on or after the date of enactment of this ,act4