What's happening
This bill prohibits companies from including contract terms that prevent consumers from making statements about goods, services, or sellers, and imposes penalties for violations.
Why it matters
Empowers consumers to share honest opinions. By banning contract terms that restrict statements about goods, services, or sellers, consumers are protected from legal threats when posting reviews or sharing experiences, which can improve transparency and accountability in the marketplace.
Establishes significant penalties for violators. Companies that include or try to enforce such restrictive clauses can face escalating civil penalties—up to $10,000 for willful or repeated violations—providing a strong deterrent against suppressing consumer speech.
Allows for both state and individual enforcement. The law gives both consumers and the Attorney General the ability to bring civil actions, increasing access to justice and ensuring that companies can be held accountable from multiple fronts.
Clarifies limits for online platforms. The bill explicitly permits online review hosts to remove statements that are otherwise lawful to take down, balancing consumer protection with the need for platforms to moderate content (e.g., for hate speech or libel).
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Who cares
Headline styles
Protect Consumer Reviews Rights
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Substituted by A3548
- Amended on third reading (t) 2455a
- Advanced to third reading
- 2nd report cal.
- 1st report cal.219
- Referred to consumer protection
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.
Protect Consumer Free Speech
Signed by Governor · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2455--A Cal. No. 219
2019-2020 Regular Sessions
IN SENATE
January 25, 2019
Introduced by Sens. KRUEGER, HOYLMAN, GOUNARDES, LIU -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07895-02-9
S. 2455--A 2
consumer, the civil penalty shall be payable to the consumer and when 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.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
This bill would prohibit a contract or proposed contract for the sale or lease of consumer goods or services from including a provision waiving the consumer's right to make any statement regarding the seller or lessor or its employees or agents, or concerning the good or services.
Summary of specific provisions
Section 1 amends the general obligations law by adding a new section 5-336 that prohibits a contract or proposed contract for the sale or lease of consumer goods or services from including a provision waiving the consumer's right to make any statement regarding the seller or lessor or its employees or agents, or concerning the good or services.
Section 1 also adds penalties for violations under the new section 5-336. Section 2 sets the effective date.
Justification
Today's consumer has been empowered both by a growing availability of information about the marketplace as well as an ability to contribute to this body of knowledge with public reviews of products or services that they have received. While many businesses have accepted that the consum- er will play an increasingly important role in providing information about the marketplace, there are those who wish to suppress the voices of their customers. Some businesses have included contract provisions that limit or prohibit a consumer from voicing their opinions about the business's products or services, provisions that are may not be obvious or fully understood by the consumer. While this practice has previously been prohibited by a New York Court (People v. Network Assoc., INC) it has not been placed into statute. This legislation would protect the rights of consumers to freely and publicly voice their opinions on products or services they have received prohibiting these restrictive clauses in contracts.
Prior legislative history
2017-18: S.6375 Consumer Protection.
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.