The Investor Choice Act of 2026 prohibits mandatory arbitration clauses in agreements between investors and brokers, dealers, investment advisers, and publicly traded companies. Currently, these financial firms can require customers to resolve disputes through private arbitration rather than allowing them to sue in court or join class action lawsuits, which the bill argues unfairly advantages large financial institutions over individual investors. Under this legislation, customers would have the right to choose whether to pursue arbitration or take legal action in court, and companies would be prohibited from forcing investors to give up class action rights. The bill applies to agreements entered into after its enactment, while voiding arbitration clauses in existing contracts unless arbitration proceedings were already underway before the law takes effect. No specific funding or implementation timeline is provided in the bill itself.
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