Relates to prohibiting consumer contract provisions waiving the consumer's right to make statements concerning goods or services.
Summary
Bill A01371 seeks to amend the General Business Law in New York by prohibiting consumer contracts from including provisions that waive a consumer's right to make statements regarding goods or services. This includes any statements about the seller, lessor, or their employees. The bill aims to protect consumers from being silenced by contractual agreements that limit their ability to express opinions or experiences related to products or services they have purchased or leased.
Impact
If enacted, this bill would significantly alter the landscape of consumer contracts in New York by rendering any waiver of the right to make statements void and unenforceable. It would establish civil penalties for violations, which could be pursued by consumers or legal authorities, thereby providing a mechanism for consumers to seek redress if their rights are infringed upon. This change could lead to increased transparency and accountability among businesses regarding consumer feedback and reviews.
Sentiment
The sentiment surrounding Bill A01371 appears to be generally supportive among consumer advocacy groups, as it aims to enhance consumer rights and protect individuals from potentially exploitative contract terms. However, there may be concerns from businesses about the implications of increased liability and the potential for litigation arising from consumer statements.
Contention
Notable points of contention may arise from businesses that argue such provisions could lead to an increase in frivolous lawsuits or discourage the use of consumer contracts altogether. Some stakeholders may express concerns about the balance between consumer protection and the need for businesses to manage their reputations and mitigate false claims.
Permits certain consumers up to five business days to cancel home improvement contracts and up to three days to cancel certain consumer goods contracts.
Enacts the consumer litigation funding act to promote consumer protections related to consumer litigation funding transactions; provides for contract requirements, including that the contract contain a no penalty provision for the prepayment of the funded amount prior to the settlement of their case; makes related provisions.
Consumer protection: unfair trade practices; disclosure of automatic renewal provisions in consumer contracts; require. Amends sec. 3 of 1976 PA 331 (MCL 445.903) & adds sec. 3j.
Consumer protection: unfair trade practices; disclosure of automatic renewal provisions in consumer contracts; require. Amends sec. 3 of 1976 PA 331 (MCL 445.903). TIE BAR WITH: HB 4826'25
Consumer protection: unfair trade practices; disclosure of automatic renewal provisions in consumer contracts; require. Amends sec. 3 of 1976 PA 331 (MCL 445.903). TIE BAR WITH: SB 535'25