Inadmissibility of arbitration on consumer disputes

Bulgaria: Bulgaria imposes ban on arbitration for consumer disputes

At the beginning of 2017, the Bulgarian legislator explicitly banned adjudication of consumer disputes by arbitration courts.

Until recently, only disputes on property rights and possession over immovable property, disputes on alimony and disputes under individual labour-law contracts fell outside the scope of jurisdiction of arbitration courts.

As a result of the amendment, each agreement on arbitration/arbitration clause for consumer disputes is invalid. Arbitration decisions on consumer disputes, including those rendered by a foreign arbitration court under the law of another country, are null and void in Bulgaria. These arbitration decisions cannot be recognized and cannot be enforced in Bulgaria.

Source: Civil Procedure Code, International Commercial Arbitration Act, Consumer Protection

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