What's happening
This bill raises the monetary threshold for requiring plain language in consumer contracts from $100,000 to $250,000.
Why it matters
Raises the threshold for plain language requirements in consumer contracts, which means fewer high-value contracts will need to be written in clear, easy-to-understand language. This could impact consumers’ ability to fully understand their rights and obligations in agreements between $100,000 and $250,000.
Potentially reduces legal protections for consumers entering into larger transactions,. as contracts above the new threshold ($250,000) can use more technical or complex legal language without penalty.
May benefit businesses and lenders by allowing greater flexibility in drafting contracts for larger transactions,. possibly reducing compliance costs or allowing more industry-specific terminology—but at the potential expense of consumer clarity.
Applies only to contracts entered into after the new law takes effect,. so existing agreements are not impacted, but future parties to high-value transactions should be aware of the change in consumer protection standards.
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Who cares
Consumers signing contracts over $100,000 and up to $250,000
The bill would extend plain-language requirements to their otherwise covered agreements, with actual damages plus a $50 penalty available for violations, subject to existing limits.
Creditors and sellers
They would need to meet plain-language requirements for otherwise covered consumer agreements over $100,000 and up to $250,000, rather than relying on the current dollar-value exemption.
Lessors
The bill would extend plain-language requirements to otherwise covered leases in that same dollar range while preserving the exception for good-faith descriptions of lease-charge and depreciation calculations.
Headline styles
Raise Plain Language Threshold
Plain English, a few words. Used as the page title.
Sponsors
14 Co-sponsors
4 Multi-sponsors
History
- Signed chap.363
- Delivered to governor
- Returned to assembly
- Passed senateVote 53–9
- 3rd reading cal.699
- Substituted for S3704
- Referred to judiciary
- Delivered to senate
- Passed assembly
- Advanced to third reading cal.151
- Reported
- Print number 2653a
Show 2 earlier actions
- Amend and recommit to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Raise Plain Language Threshold
Senate Floor Calendar · Sponsor Brian Kavanagh
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2653--A
2019-2020 Regular Sessions
IN ASSEMBLY
January 24, 2019
Introduced by M. of A. DINOWITZ, WEPRIN, GOTTFRIED, ARROYO, JOYNER, REYES, SAYEGH, GALEF, EPSTEIN, D'URSO -- Multi-Sponsored by -- M. of A. ENGLEBRIGHT, HEVESI, SIMON -- read once and referred to the Committee on Judiciary -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the general obligations law, in relation to requirements for the use of plain language in consumer transactions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The closing paragraph of subdivision a of section 5-702 of the general obligations law, as amended by chapter 484 of the laws of 2018, is amended to read as follows:
Any creditor, seller or lessor who fails to comply with this subdivision shall be liable to a consumer who is a party to a written agreement governed by this subdivision in an amount equal to any actual damages sustained plus a penalty of fifty dollars. The total class action penalty against any such creditor, seller or lessor shall not exceed ten thousand dollars in any class action or series of class actions arising out of the use by a creditor, seller or lessor of an agreement which fails to comply with this subdivision. No action under this subdivision may be brought after both parties to the agreement have fully performed their obligation under such agreement, nor shall any creditor, seller or lessor who attempts in good faith to comply with this subdivision be liable for such penalties. This subdivision shall not apply to a good faith attempt to describe the constant yield or other method of determining the lease charge and depreciation portions of each base rental payment under a lease of personal property. It also shall not apply to agreements involving amounts in excess of [one] two hundred fifty thousand dollars nor prohibit the use of words or phrases or forms of agreement required by state or federal law, rule or regulation or by a governmental instrumentality.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00635-03-9
A. 2653--A 2
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to any contract entered into after such effective date; provided, however, that if chapter 484 of the laws of 2018 shall not have taken effect on or before such date then section one of this act shall take effect on the same date and in the same manner as such chapter of the laws of 2018 takes effect.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.