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A3548Assembly2019-2020 SessionSame asS2455

Protect Consumer Free Speech

Official title

“Relates to voiding and rendering unenforceable contract provisions limiting certain speech by contractees”

Sponsor Jeffrey DinowitzAD-81+18 co-sponsorsAffects Legal
Status
Signed by Governor
Impact
6/10
Moderate
Outcome
Signed into law

Bill progress

Signed into law

What's happening

This bill prohibits contracts from waiving consumers’ rights to express opinions about sellers or goods, imposing penalties for violations.

Why it matters

  1. Protects consumer speech. By making any contract clause that restricts consumers from sharing honest opinions or experiences about sellers, their employees, or their products/services void and unenforceable, this bill directly safeguards consumers’ right to freely review and discuss businesses.

  2. Imposes real financial consequences for businesses. Sellers who attempt to enforce, threaten to enforce, or penalize consumers for such statements face significant civil penalties—up to $2,500 for a first violation, $5,000 for subsequent violations, and up to $10,000 for willful or intentional violations. These penalties can be pursued by the consumer or the Attorney General.

  3. Empowers consumers and deters abusive contract terms. The ability for consumers themselves to bring civil actions and receive penalties provides a direct incentive for individuals to stand up against unfair contract practices, not just rely on state enforcement.

  4. Clarifies online platform responsibilities. The bill makes clear that it does not prevent websites or businesses from removing consumer statements that are otherwise lawful to remove, preserving online platforms’ ability to moderate content per existing laws and policies.

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Who cares

Headline styles

Protect Consumer Free Speech

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Jeffrey Dinowitz

Assembly Member · Assembly District 81

Chair, Codes

History

  1. Signed chap.498
  2. Delivered to governor
  3. Returned to assembly
  4. Passed senateVote 43–19
  5. 3rd reading cal.219
  6. Substituted for S2455A
  7. Referred to rules
  8. Delivered to senate
  9. Passed assembly
  10. Ordered to third reading rules cal.116
  11. Rules report cal.116
  12. Reported
Show 3 earlier actions
  1. Reported referred to rules
  2. Reported referred to codes
  3. 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.

S2455Senate

Protect Consumer Reviews Rights

Senate Floor Calendar · Sponsor Liz Krueger

Impact 6 · Moderate0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

3548

2019-2020 Regular Sessions

IN ASSEMBLY

January 29, 2019

Introduced by M. of A. DINOWITZ, GOTTFRIED, GALEF, BRAUNSTEIN, MAGNAREL- LI, ABINANTI, OTIS -- read once and referred to the Committee on Judiciary

AN ACT to amend the general obligations law, in relation to requiring contractees to waive their rights relating to the making of certain statements about contractors

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The general obligations law is amended by adding a new section 5-337 to read as follows:

§ 5-337. Agreements requiring contractees to waive their rights in relation to expressing certain opinions about contractors void and unenforceable. 1. (a) A contract or proposed contract for the sale or lease of consumer goods or services may not include a provision waiving the consumer's right to make any statement regarding the seller or lessor or its employees or agents, or concerning the goods or services.

(b) It shall be unlawful to threaten or to seek to enforce a provision made unlawful under this section, or to otherwise penalize a consumer for making any statement protected under this section.

2. Any waiver of the provisions of this section is contrary to public policy, and is void and unenforceable.

3. Any person or entity that violates this section shall be subject to a civil penalty not to exceed two thousand five hundred dollars for the first violation, and five thousand dollars for the second and for each subsequent violation, to be assessed and collected in a civil action brought by the consumer or by the attorney general. In addition, for a willful or intentional violation of this section, a consumer or the attorney general may recover a civil penalty not to exceed ten thousand dollars. Under this section, when the civil action is brought by the consumer, the civil penalty shall be payable to the consumer and when

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD00731-01-9

A. 3548 2

the civil action is brought by the attorney general, such civil penalty shall be payable to the state.

4. The penalty provided by this section is not an exclusive remedy, and does not affect any other relief or remedy provided by law. This section shall not be construed to prohibit or limit a person or business that hosts online consumer reviews or comments from removing a statement that is otherwise lawful to remove.

§ 2. This act shall take effect on the ninetieth day after it shall have become a law.

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.