NY State Senate Bill 2019-S2455

Senate Bill S2455

Signed By Governor

2019-2020 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 Via A3548 - Signed by Governor

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 20, 2019	signed chap.498
Nov 08, 2019	delivered to governor
Jun 17, 2019	returned to assembly passed senate 3rd reading cal.219 substituted for s2455a
Jun 17, 2019	substituted by a3548
May 30, 2019	amended on third reading (t) 2455a
Mar 07, 2019	advanced to third reading
Mar 06, 2019	2nd report cal.
Mar 05, 2019	1st report cal.219
Jan 25, 2019	referred to consumer protection

Votes

- Jun 17, 2019 - Floor Vote
  A3548
  
  43
  
  Aye
  
  19
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 17, 2019
      
      aye (43)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Rivera
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      nay (19)
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Boyle
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Griffo
      
      Helming
      
      Jacobs
      
      Jordan
      
      LaValle
      
      Lanza
      
      O'Mara
      
      Ortt
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Tedisco
  Mar 5, 2019 - Consumer Protection Committee Vote
  S2455
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: Mar 5, 2019
      
      aye (5)
      
      Comrie
      
      Kavanagh
      
      Myrie
      
      Ramos
      
      Thomas
      
      aye wr (2)
      
      Jacobs
      
      Tedisco

Bill Amendments

Original

A (Active)

co-Sponsors

2019-S2455 - Details

See Assembly Version of this Bill:: A6544
Law Section:: General Business Law
Laws Affected:: Add §398-f, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6375
2021-2022: A2237
2023-2024: A1704

2019-S2455 - Summary

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

2019-S2455 - Sponsor Memo

                                
 
BILL NUMBER: S2455

SPONSOR: KRUEGER
 
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 state-
ments 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 TripAd-
visor, 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 assign-
ing 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.

 
LEGISLATIVE HISTORY:

2017-18: S.6375 Consumer Protection

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S2455 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2455
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 25, 2019
                                ___________
 
 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.

                                                            LBD07895-01-9

 S. 2455                             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.

co-Sponsors

2019-S2455A (ACTIVE) - Details

See Assembly Version of this Bill:: A6544
Law Section:: General Business Law
Laws Affected:: Add §398-f, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6375
2021-2022: A2237
2023-2024: A1704

2019-S2455A (ACTIVE) - Summary

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

2019-S2455A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2455A

SPONSOR: KRUEGER
 
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:

2017-18: S.6375 Consumer Protection.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S2455A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2455--A
     Cal. No. 219
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 25, 2019
                                ___________
 
 Introduced  by  Sens. KRUEGER, HOYLMAN, GOUNARDES, LIU -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Consumer Protection -- reported favorably from said committee, ordered
   to  first  and  second report, ordered to a third reading, amended and
   ordered reprinted, retaining its place in the order of third reading
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD07895-02-9

 S. 2455--A                          2
 
 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.
   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 S2455

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Sponsored By

Liz Krueger

Archive: Last Bill Status Via A3548 - Signed by Governor

Bill Amendments

co-Sponsors

Andrew Gounardes

John C. Liu

2019-S2455 - Details

2019-S2455 - Summary

2019-S2455 - Sponsor Memo

2019-S2455 - Bill Text download pdf

co-Sponsors

Brad Hoylman-Sigal

Andrew Gounardes

John C. Liu

2019-S2455A (ACTIVE) - Details

2019-S2455A (ACTIVE) - Summary

2019-S2455A (ACTIVE) - Sponsor Memo

2019-S2455A (ACTIVE) - Bill Text download pdf

Comments