S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2608
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 24, 2019
                                ___________
 
 Introduced by M. of A. DINOWITZ, WEINSTEIN, GALEF, WILLIAMS, M. G. MILL-
   ER,  COLTON, DICKENS, GOTTFRIED, D'URSO, SEAWRIGHT, JAFFEE, ZEBROWSKI,
   MOSLEY -- read once and referred to the Committee on Consumer  Affairs
   and Protection
 
 AN  ACT  to  amend  the  general  business law, in relation to requiring
   notice of mandatory arbitration clauses in certain consumer contracts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  399-c  of  the general business law, as added by
 chapter 946 of the laws of 1984, is amended to read as follows:
   § 399-c. Mandatory arbitration clauses in certain  consumer  contracts
 [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,  OR  EMPLOYMENT,  the
 intended use or benefit of which is intended for the personal, family or
 household purposes of such consumer.
   c.  The  term  "mandatory  arbitration  clause"  shall  mean a term or
 provision contained in a written contract for the sale  or  purchase  of
 consumer  goods  OR  EMPLOYMENT,  which  requires  the  parties  to such
 contract  to  submit  any  controversy  thereafter  arising  under  such
 contract to arbitration prior to the commencement of any legal action to
 enforce  the provisions of such contract and which also further provides
 language to the effect that the decision of the arbitrator or  panel  of
 arbitrators  in its application to the consumer party shall be final and
 not subject to court review.
   d. The term "arbitration" shall mean the  use  of  a  decision  making
 forum  conducted  by  an  arbitrator  or panel of arbitrators within the
 meaning and subject to the provisions of  article  seventy-five  of  the
 civil practice law and rules.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01200-01-9

 A. 2608                             2
 
   E.  THE  TERM  "REPRESENTATIVE"  SHALL  MEAN AN EMPLOYEE OR AGENT OF A
 COMPANY WHO IS RESPONSIBLE FOR ADMINISTERING  A  CONTRACT  FOR  CONSUMER
 GOODS, SERVICES, OR EMPLOYMENT TO A CONSUMER.
   2.  a.  Prohibition.  No  written contract for the sale or purchase of
 consumer goods, entered into on or after  the  effective  date  of  this
 section, to which a consumer is a party, shall contain a mandatory arbi-
 tration  clause. Nothing contained herein shall be construed to prohibit
 a non-consumer party from incorporating a provision within such contract
 that such non-consumer party agrees that the decision of the  arbitrator
 or  panel  of arbitrators shall be final in its application to such non-
 consumer party and not subject to court review.
   b. Mandatory arbitration clause null and void.  The  provisions  of  a
 mandatory  arbitration  clause  shall be null and void. The inclusion of
 such clause in a written contract for the sale or purchase  of  consumer
 goods  shall  not  serve  to  impair  the  enforceability  of  any other
 provision of such contract.
   3. IN THE EVENT THAT A CONSUMER IS REQUIRED TO  SIGN  A  CONTRACT  FOR
 CONSUMER  GOODS,  SERVICES,  OR  EMPLOYMENT CONTAINING A MANDATORY ARBI-
 TRATION CLAUSE THE REPRESENTATIVE SHALL  DISCLOSE  THE  MANDATORY  ARBI-
 TRATION  CLAUSE  TO THE CONSUMER AND CLEARLY EXPLAIN, IN PLAIN LANGUAGE,
 WHAT AN ARBITRATION CLAUSE IS. IF THE CONSUMER IS AGREEING TO A CONTRACT
 BY ANY FORM OF CONTACT THAT IS NOT PERSONAL, INCLUDING BUT  NOT  LIMITED
 TO,  ELECTRONICALLY,  USING  THE  INTERNET  OR  THROUGH  THE  MAIL, SUCH
 CONTRACT SHALL HAVE, AT THE END OF SUCH CONTRACT, INFORMATION  INFORMING
 THE CONSUMER THAT THEY ARE SIGNING A MANDATORY ARBITRATION CLAUSE AND AN
 INTERNET  LINK TO A VALID AND PLAIN WRITTEN EXPLANATION OF WHAT AN ARBI-
 TRATION CLAUSE IS.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.