A 1371: Relates to prohibiting consumer contract provisions waiving the consumer's right to make statements concerning goods or services.
The proposed law aims to protect consumers by prohibiting certain contract provisions in sales and leases of goods and services. These provisions would prevent consumers from making statements about the seller, lessor, or their employees or agents, or about the goods or services. It would also make it unlawful to threaten or penalize consumers for making these statements. The law declares that any waiver of these provisions is contrary to public policy and is therefore void and unenforceable. Violators of the law could face civil penalties, with the first violation being up to $2,500, and subsequent violations being up to $5,000. Additionally, consumers, the attorney general, or local authorities may recover a civil penalty of up to $10,000 for willful, intentional, or reckless violations. The law does not affect the removal of lawful statements from online consumer reviews or comments.…
| Jan. 07, 2026 | referred to consumer affairs and protection |
| Jan. 09, 2025 | referred to consumer affairs and protection |
STATE OF NEW YORK ________________________________________________________________________ 1371 2025-2026 Regular Sessions IN ASSEMBLY January 9, 2025 ___________ Introduced by M. of A. SIMON, HYNDMAN, WOERNER, COLTON, GLICK, LEVENBERG -- Multi-Sponsored by -- M. of A. COOK, DILAN, EPSTEIN, MAGNARELLI, SAYEGH, STECK, STIRPE -- read once and referred to the Committee on Consumer Affairs and Protection AN ACT to amend the general business law, in relation to prohibiting consumer contract provisions waiving the consumer's right to make statements concerning goods or services The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general business law is amended by adding a new section 2 398-g to read as follows: 3 § 398-g. Provisions waiving the consumer's right to make statements 4 concerning goods or services in consumer contracts prohibited. 1. (a) A 5 contract or proposed contract for the sale or lease of consumer goods or 6 services shall not include a provision waiving the consumer's right to 7 make any statement regarding the seller or lessor or its employees or 8 agents, or concerning the goods or services. 9 (b) It shall be unlawful to threaten or to seek to enforce a provision 10 made unlawful under this section, or to otherwise penalize a consumer 11 for making any statement protected under this section. 12 2. Any waiver of the provisions of this section is contrary to public 13 policy, and is void and unenforceable. 14 3. Any person who violates this section shall be subject to a civil 15 penalty not to exceed two thousand five hundred dollars for the first 16 violation, and five thousand dollars for the second and for each subse- 17 quent violation, to be assessed and collected in a civil action brought 18 by the consumer, by the attorney general, or by the district attorney or 19 city attorney of the county or city in which the violation occurred. 20 When collected, the civil penalty shall be payable, as appropriate, to 21 the consumer or to the general fund of whichever governmental entity 22 brought the action to assess the civil penalty. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02731-01-5A. 1371 2 1 4. In addition, for a willful, intentional, or reckless violation of 2 this section, a consumer, the attorney general, or the district attorney 3 or city attorney of the county or city in which the violation occurred 4 may recover a civil penalty not to exceed ten thousand dollars. 5 5. The penalty provided by this section is not an exclusive remedy, 6 and does not affect any other relief or remedy provided by law. This 7 section shall not be construed to prohibit or limit a person or business 8 that hosts online consumer reviews or comments from removing a statement 9 that is otherwise lawful to remove. 10 § 2. This act shall take effect immediately.