In recent years, arbitration has gained prominence as a method of resolving consumer disputes. However, this expansion has also brought numerous new challenges. Therefore, the legal system must ensure that consumer arbitration constitutes an effective and fair alternative to court proceedings. This master’s thesis analyzes the key legal and practical issues of consumer arbitration, starting from the tension between the principle of party autonomy and the requirement for special legal protection of consumers as the weaker contractual party. Consumer arbitration must not violate the consumer’s right to a fair trial, and parties can validly waive only certain procedural guarantees. A review of the case law of the Court of Justice of the EU (»CJEU«) shows that arbitration clauses in consumer contracts often constitute unfair contractual terms and that consumers frequently do not actively participate in arbitration proceedings. CJEU therefore requires national courts to assess the fairness of arbitration clauses ex officio, thereby ensuring a high level of consumer protection. In contrast, U.S. court practice emphasizes the contractual nature of arbitration, resulting in a lower level of consumer protection. The thesis concludes that consumer arbitration can represent an effective and fair method of resolving consumer disputes if it provides the consumer with adequate protection against the abuse of power by the economically stronger party.
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