Unfair arbitration agreements: effect of Consumer Rights Act 2015

Bright J, in two decisions handed down at the end of July 2023, discussed at length the operation of the provisions of the Consumer Rights Act 2015 on consumer arbitrations, and in particular the extent to which arbitration agreements are enforceable against consumers. In Payward Inc and Others v Chechetkin [2023] EWHC 1780 (Comm); [2023] 2 Lloyd's Rep 507 the agreement was held to be invalid, whereas in Eternity Sky Investments Ltd v Zhang [2023] EWHC 1964 (Comm); [2023] 2 Lloyd's Rep 419 the agreement was held to be valid.

Statutory background