Assembly Bill A5718B

2017-2018 Legislative Session

Prohibits the use of non-disparagement clauses in consumer contracts

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

co-Sponsors

2017-A5718 - Details

See Senate Version of this Bill:
S6367
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add §399-cccc, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:
A10331, S1722

2017-A5718 - Summary

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 goods or services.

2017-A5718 - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5718
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2017
                                ___________
 
 Introduced  by M. of A. SKOUFIS -- read once and referred to the Commit-
   tee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, in relation to the prohibition
   of the use of non-disparagement clauses in consumer contracts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 399-cccc to read as follows:
   §   399-CCCC.  NON-DISPARAGEMENT  CLAUSES  IN  CONSUMER  CONTRACTS  OR
 SERVICES PROHIBITED. 1.  DEFINITIONS.
   A. THE TERM "CONSUMER" SHALL MEAN A NATURAL PERSON  RESIDING  IN  THIS
 STATE.
   B. THE TERM "CONSUMER GOODS" SHALL MEAN GOODS, WARES, PAID MERCHANDISE
 OR  SERVICES  PURCHASED  OR  PAID FOR BY A CONSUMER, THE INTENDED USE OR
 BENEFIT OF WHICH IS INTENDED  FOR  THE  PERSONAL,  FAMILY  OR  HOUSEHOLD
 PURPOSES OF SUCH CONSUMER.
   C.  THE  TERM  "CONSUMER  SERVICES"  SHALL  MEAN  SERVICES PROVIDED TO
 CONSUMERS  INCLUDING,  BUT  NOT  LIMITED  TO,  LEGAL  SERVICES,  MEDICAL
 SERVICES OR CLEANING SERVICES.
   D.  THE TERM "NON-DISPARAGEMENT CLAUSE" SHALL MEAN A PROVISION WAIVING
 THE CONSUMER'S RIGHT TO MAKE ANY STATEMENT REGARDING A SELLER OR  LESSOR
 OR ITS EMPLOYEES OR AGENTS, OR CONCERNING THE GOODS OR SERVICES.
   2.  PROHIBITION.  A.  A  CONTRACT OR PROPOSED CONTRACT FOR THE SALE OR
 LEASE OF CONSUMER GOODS OR SERVICES MAY NOT INCLUDE A  NON-DISPARAGEMENT
 CLAUSE.  THE INCLUSION OF SUCH CLAUSE IN A CONTRACT OR PROPOSED CONTRACT
 FOR THE SALE OR LEASE OF CONSUMER GOODS OR SERVICES SHALL NOT  SERVE  TO
 IMPAIR THE ENFORCEABILITY OF ANY OTHER PROVISION OF SUCH CONTRACT.
   B.  IT  SHALL BE UNLAWFUL TO THREATEN OR TO SEEK TO ENFORCE A NON-DIS-
 PARAGEMENT CLAUSE MADE UNLAWFUL UNDER  THIS  SECTION,  OR  TO  OTHERWISE
 PENALIZE  A  CONSUMER  FOR  MAKING  ANY  STATEMENT  PROTECTED UNDER THIS
 SECTION. THE INCLUSION OF SUCH CLAUSE IN A WRITTEN CONTRACT FOR THE SALE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

co-Sponsors

2017-A5718A - Details

See Senate Version of this Bill:
S6367
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add §399-cccc, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:
A10331, S1722

2017-A5718A - Summary

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 goods or services.

2017-A5718A - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5718--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2017
                                ___________
 
 Introduced  by  M.  of A. SKOUFIS, HOOPER, MONTESANO, STECK -- read once
   and referred to the Committee on Consumer Affairs  and  Protection  --
   reported   and  referred  to  the  Committee  on  Codes  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to amend the general business law, in relation to the prohibition
   of the use of non-disparagement clauses in consumer contracts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 399-cccc to read as follows:
   §   399-CCCC.  NON-DISPARAGEMENT  CLAUSES  IN  CONSUMER  CONTRACTS  OR
 SERVICES PROHIBITED. 1.  DEFINITIONS.
   A. THE TERM "CONSUMER" SHALL MEAN A NATURAL PERSON  RESIDING  IN  THIS
 STATE.
   B. THE TERM "CONSUMER GOODS" SHALL MEAN GOODS, WARES, PAID MERCHANDISE
 OR  SERVICES  PURCHASED  OR  PAID FOR BY A CONSUMER, THE INTENDED USE OR
 BENEFIT OF WHICH IS INTENDED  FOR  THE  PERSONAL,  FAMILY  OR  HOUSEHOLD
 PURPOSES OF SUCH CONSUMER.
   C.  THE  TERM  "CONSUMER  SERVICES"  SHALL  MEAN  SERVICES PROVIDED TO
 CONSUMERS  INCLUDING,  BUT  NOT  LIMITED  TO,  LEGAL  SERVICES,  MEDICAL
 SERVICES OR CLEANING SERVICES.
   D.  THE TERM "NON-DISPARAGEMENT CLAUSE" SHALL MEAN A PROVISION WAIVING
 THE CONSUMER'S RIGHT TO MAKE ANY STATEMENT REGARDING A SELLER OR  LESSOR
 OR ITS EMPLOYEES OR AGENTS, OR CONCERNING THE GOODS OR SERVICES.
   2.  PROHIBITION.  A.  A  CONTRACT OR PROPOSED CONTRACT FOR THE SALE OR
 LEASE OF CONSUMER GOODS OR SERVICES MAY NOT INCLUDE A  NON-DISPARAGEMENT
 CLAUSE.  THE INCLUSION OF SUCH CLAUSE IN A CONTRACT OR PROPOSED CONTRACT
 FOR THE SALE OR LEASE OF CONSUMER GOODS OR SERVICES SHALL NOT  SERVE  TO
 IMPAIR THE ENFORCEABILITY OF ANY OTHER PROVISION OF SUCH CONTRACT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07502-02-7

co-Sponsors

2017-A5718B (ACTIVE) - Details

See Senate Version of this Bill:
S6367
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add §399-cccc, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:
A10331, S1722

2017-A5718B (ACTIVE) - Summary

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 goods or services.

2017-A5718B (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5718--B
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2017
                                ___________
 
 Introduced  by  M.  of A. SKOUFIS, HOOPER, MONTESANO, STECK -- read once
   and referred to the Committee on Consumer Affairs  and  Protection  --
   reported   and  referred  to  the  Committee  on  Codes  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee -- again reported from said  committee  with  amend-
   ments, ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the general business law, in relation to the prohibition
   of the use of non-disparagement clauses in consumer contracts
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 399-cccc to read as follows:
   §  399-CCCC.  NON-DISPARAGEMENT  CLAUSES  IN  CONSUMER  CONTRACTS   OR
 SERVICES PROHIBITED. 1.  DEFINITIONS.
   A.  THE  TERM  "CONSUMER" SHALL MEAN A NATURAL PERSON RESIDING IN THIS
 STATE.
   B. THE TERM "CONSUMER GOODS" SHALL MEAN GOODS, WARES, PAID MERCHANDISE
 OR SERVICES PURCHASED OR PAID FOR BY A CONSUMER,  THE  INTENDED  USE  OR
 BENEFIT  OF  WHICH  IS  INTENDED  FOR  THE PERSONAL, FAMILY OR HOUSEHOLD
 PURPOSES OF SUCH CONSUMER.
   C. THE TERM  "CONSUMER  SERVICES"  SHALL  MEAN  SERVICES  PROVIDED  TO
 CONSUMERS  INCLUDING,  BUT  NOT  LIMITED  TO,  LEGAL  SERVICES,  MEDICAL
 SERVICES OR CLEANING SERVICES.
   D. THE TERM "NON-DISPARAGEMENT CLAUSE" SHALL MEAN A PROVISION  WAIVING
 THE  CONSUMER'S RIGHT TO MAKE ANY STATEMENT REGARDING A SELLER OR LESSOR
 OR ITS EMPLOYEES OR AGENTS, OR CONCERNING THE GOODS OR SERVICES.
   2. PROHIBITION. A. A CONTRACT OR PROPOSED CONTRACT  FOR  THE  SALE  OR
 LEASE  OF CONSUMER GOODS OR SERVICES MAY NOT INCLUDE A NON-DISPARAGEMENT
 CLAUSE. THE INCLUSION OF SUCH CLAUSE IN A CONTRACT OR PROPOSED  CONTRACT
 FOR  THE  SALE OR LEASE OF CONSUMER GOODS OR SERVICES SHALL NOT SERVE TO
 IMPAIR THE ENFORCEABILITY OF ANY OTHER PROVISION OF SUCH CONTRACT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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