Senate Bill S3349

2019-2020 Legislative Session

Relates to voiding and rendering unenforceable contract provisions limiting certain speech by contractees

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Archive: Last Bill Status - Stricken

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
Jun 03, 2019	recommit, enacting clause stricken
Feb 05, 2019	referred to judiciary

2019-S3349 (ACTIVE) - Details

See other versions of this Bill:: S2455 ,; A3548 ,
Law Section:: General Obligations Law
Laws Affected:: Add §5-337, Gen Ob L
Versions Introduced in 2017-2018 Legislative Session:: S6375

2019-S3349 (ACTIVE) - Summary

Relates to voiding and rendering unenforceable contract provisions limiting certain speech by contractees.

2019-S3349 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3349

SPONSOR: HOYLMAN
 
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:

New bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S3349 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3349
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2019
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 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  ASSEM-
 BLY, 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 UNEN-
 FORCEABLE.  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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00731-01-9

 S. 3349                             2
 
   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.

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Senate Bill S3349

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Archive: Last Bill Status - Stricken

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2019-S3349 (ACTIVE) - Details

2019-S3349 (ACTIVE) - Summary

2019-S3349 (ACTIVE) - Sponsor Memo

2019-S3349 (ACTIVE) - Bill Text download pdf

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Sponsored By

Brad Hoylman-Sigal

Archive: Last Bill Status - Stricken

Actions

2019-S3349 (ACTIVE) - Details

2019-S3349 (ACTIVE) - Summary

2019-S3349 (ACTIVE) - Sponsor Memo

2019-S3349 (ACTIVE) - Bill Text download pdf

Comments