NY State Senate Bill 2017-S6375

Senate Bill S6375

2017-2018 Legislative Session

Relates to prohibiting consumer contract provisions waiving the consumer's right to make statements concerning goods or services

download bill text pdf

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to consumer protection
May 11, 2017	referred to consumer protection

2017-S6375 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §398-f, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:: S2455

2017-S6375 (ACTIVE) - Summary

Relates to prohibiting consumer contract provisions waiving the consumer's right to make statements concerning goods or services.

2017-S6375 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6375

 TITLE OF BILL :  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

 PURPOSE OR GENERAL IDEA OF BILL :

Relates to prohibiting the consumer contract provisions waiving the
consumer's right to make statements concerning goods or services.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 adds section 399-zzzzz to the general business law to
prohibit consumers from signing contracts that waive the right of the
consumer to make statements regarding the seller or lessor and to
create a civil penalty to sellers or lessors who impose or propose
contracts that waive such rights of the consumers.

Section 2 states the effective date.

 JUSTIFICATION :

In recent years, review websites and applications, like Yelp and
TripAdvisor, have rapidly gained popularity with allowing consumers to
post and comment on reviews of sellers and lessors of goods and

services. When signing up for such websites and applications,
consumers agree to the Terms of Services and Privacy Policy.
Currently, websites have the ability to create contracts in their
Terms of Services that require consumers to waive their right to post
negative comments about sellers or lessors, ultimately infringing on a
consumer's right to free speech. This waiver penalizes the consumer
for making negative comments about sellers and lessors and ultimately
allows the seller or lessor to sue the consumer for posting an
unfavorable review.

This bill would protect a consumer's right to make statements
regarding goods or services by prohibiting the waiver of these rights.
By assigning a civil penalty to review websites and applications that
create waivers on a consumer's right to make statements, more
consumers will be informed about a consumer's satisfaction with goods
and services across New York. This bill does not limit a seller's or
lessor's right to a civil course of action for defamation, libel, or
slander.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S6375 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6375
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer 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:
 
   Section 1. The general business law is amended by adding a new section
 398-f to read as follows:
   §  398-F.  PROVISIONS  WAIVING THE CONSUMER'S RIGHT TO MAKE STATEMENTS
 CONCERNING GOODS OR SERVICES IN CONSUMER CONTRACTS PROHIBITED. 1. (A)  A
 CONTRACT OR PROPOSED CONTRACT FOR THE SALE OR LEASE OF CONSUMER GOODS OR
 SERVICES  SHALL  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  WHO 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 SUBSE-
 QUENT VIOLATION, TO BE ASSESSED AND COLLECTED IN A CIVIL ACTION  BROUGHT
 BY THE CONSUMER, BY THE ATTORNEY GENERAL, OR BY THE DISTRICT ATTORNEY OR
 CITY  ATTORNEY  OF  THE  COUNTY OR CITY IN WHICH THE VIOLATION OCCURRED.
 WHEN COLLECTED, THE CIVIL PENALTY SHALL BE PAYABLE, AS  APPROPRIATE,  TO
 THE  CONSUMER  OR  TO  THE GENERAL FUND OF WHICHEVER GOVERNMENTAL ENTITY
 BROUGHT THE ACTION TO ASSESS THE CIVIL PENALTY.
   4. IN ADDITION, FOR A WILLFUL, INTENTIONAL, OR RECKLESS  VIOLATION  OF
 THIS SECTION, A CONSUMER, THE ATTORNEY GENERAL, OR THE DISTRICT ATTORNEY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11705-01-7

 S. 6375                             2
 
 OR  CITY  ATTORNEY OF THE COUNTY OR CITY IN WHICH THE VIOLATION OCCURRED
 MAY RECOVER A CIVIL PENALTY NOT TO EXCEED TEN THOUSAND DOLLARS.
   5.  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 immediately.

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