NY State Senate Bill 2019-S1722

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to consumer protection
Jan 16, 2019	referred to consumer protection

co-Sponsors

2019-S1722 (ACTIVE) - Details

See Assembly Version of this Bill:: A10331
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §399-k, Gen Bus L
Versions Introduced in 2017-2018 Legislative Session:: S6367, A5718

2019-S1722 (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.

2019-S1722 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1722

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the general business law, in relation to the prohibition
of the use of non-disparagement clauses in consumer contracts

 
PURPOSE OR GENERAL IDEA OF BILL:

Prohibits companies from using non-disparagement clauses in contracts as
to protect consumers who make any statements regarding a seller or
lessor or concerning the goods and services

 
SUMMARY OF PROVISIONS:

Section 1: Prohibits a contract for the sale or lease of consumer goods
or services may not include a non-disparagement clause. Creates civil
penalties for any person who violates this section.

Section 2: Effective Date

 
JUSTIFICATION:

Given the potential impact of negative reviews for businesses, some have
tried to stop them wherever possible. This has prompted legislation in
six different state legislatures, with two of the bills already signed
into law. Some businesses have used deceptive practices and inserted
non-disparagement clauses into online service agreements or fine print
of a contract making the consumer liable for statements or actions that
could potentially harm the business.  Posting a negative online review
on a consumer review site (e.g.  Amazon, Consumer Reports, Trip Advisor,
Yelp) could result in a libel lawsuit against the consumer.

 
PRIOR LEGISLATIVE HISTORY:

Assembly:

06/21/17 - Passed Assembly

01/03/18 - Returned to Assembly

01/03/18 - Ordered to third reading cal. 403

03/20/18 - Passed Assembly

Senate:

June, 2017 - Died in Senate

01/03/18 - Referred to Consumer Protection

03/20/18 - Delivered to Senate

03/20/18 - Referred to Consumer Protection

 
FISCAL IMPLICATIONS:

None
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

2019-S1722 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1722
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2019
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- 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 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-k to read as follows:
   §  399-K.  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.

                                                            LBD07331-01-9

 S. 1722                             2
 
 OR PURCHASE OF CONSUMER GOODS SHALL NOT SERVE TO IMPAIR THE ENFORCEABIL-
 ITY OF ANY OTHER PROVISION OF SUCH CONTRACT.
   C.  ANY WAIVER OF THE PROVISIONS OF THIS SECTION IS CONTRARY TO PUBLIC
 POLICY, AND IS VOID AND UNENFORCEABLE.
   3. PENALTY. A. ANY PERSON WHO VIOLATES THIS SECTION SHALL  BE  SUBJECT
 TO  A  CIVIL  PENALTY  NOT  TO EXCEED FIVE HUNDRED DOLLARS FOR THE FIRST
 VIOLATION, AND ONE THOUSAND DOLLARS FOR THE SECOND AND FOR  EACH  SUBSE-
 QUENT  VIOLATION, TO BE ASSESSED AND COLLECTED IN A CIVIL ACTION BROUGHT
 BY THE ATTORNEY GENERAL.
   B. ANY PERSON WHO SEEKS TO ENFORCE  A  NON-DISPARAGEMENT  CLAUSE  MADE
 UNLAWFUL  UNDER THIS SECTION OR OTHERWISE PENALIZE A CONSUMER FOR MAKING
 ANY STATEMENT PROTECTED UNDER THIS SECTION SHALL BE SUBJECT TO  A  CIVIL
 PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS TO BE ASSESSED AND COLLECTED
 IN A CIVIL ACTION BY THE ATTORNEY GENERAL.
   C.  ANY  CONSUMER  DAMAGED BY A VIOLATION OF THIS SECTION MAY BRING AN
 ACTION FOR RECOVERY OF DAMAGES. JUDGMENT MAY BE ENTERED IN AN AMOUNT NOT
 TO EXCEED THREE TIMES THE  ACTUAL  DAMAGES  PLUS  REASONABLE  ATTORNEY'S
 FEES.  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.

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Senate Bill S1722

Sponsored By

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

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co-Sponsors

2019-S1722 (ACTIVE) - Details

2019-S1722 (ACTIVE) - Summary

2019-S1722 (ACTIVE) - Sponsor Memo

2019-S1722 (ACTIVE) - Bill Text download pdf

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Sponsored By

James Skoufis

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

Actions

co-Sponsors

Andrew Gounardes

2019-S1722 (ACTIVE) - Details

2019-S1722 (ACTIVE) - Summary

2019-S1722 (ACTIVE) - Sponsor Memo

2019-S1722 (ACTIVE) - Bill Text download pdf

Comments