Public interest groups filed an amicus brief this past week in the case Gemini Trust Company, LLC v. National Association of Consumer Advocates, Inc. (NACA), opposing the company’s attempt to force arbitration of the dispute.
In 2024, *NACA sued Gemini, a cryptocurrency exchange, in the District of Columbia Superior Court, alleging that the company’s terms in its user agreement violate the Electronic Funds Transfer Act and are unfair and deceptive under the D.C. Consumer Protection Procedures Act (CPPA). The D.C. consumer law grants public interest organizations the right to bring consumer protection lawsuits.
After the lower court denied Gemini’s motion to compel arbitration, the company appealed. Legal Aid DC, Public Justice, National Consumer Law Center, and Stetson Consumer Advocacy Society, contend that NACA is not subject to the arbitration clause because, among other points, 1) The organization is not a party to Gemini’s user agreement and did not consent to it. It is a “complete stranger to the contract.” 2) NACA has an independent statutory right under D.C.’s CCPA to bring lawsuits, and private contracts cannot impact that right. 3) The lawsuit is not dependent on any individual consumer’s rights under a contract.
The brief likens the legal action to public enforcement actions by state attorneys general and other officials, who are neither a party nor subject to arbitration agreements.
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*my employer
