Trades Oppose ALI’s Restatement of Law, Consumer Contracts

The American Bankers Association yesterday joined with twelve other trade organizations to express strong concern about the American Law Institute’s pending draft Restatement of Law for consumer contracts. ALI publishes Restatements of Law that are widely cited in the legal profession to summarize existing case law and precedents across United States jurisdictions. The draft — which was issued in October — is expected to be finalized this year.

The associations — which represented the financial services, retail and telecommunications industries — noted that the Restatement is “fundamentally flawed,” and added that it may be used in unanticipated ways to undermine existing consumer protections.