Assembly Bill A2539

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2539
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2025
                                ___________
 
 Introduced  by  M.  of A. DINOWITZ, WEPRIN, WILLIAMS, COLTON, SEAWRIGHT,
   SIMON, RAGA, OTIS -- read  once  and  referred  to  the  Committee  on
   Consumer Affairs and Protection
 
 AN  ACT  to  amend  the  general  business law, in relation to requiring
   mandatory arbitration clauses in  certain  consumer  contracts  to  be
   printed in large font type

   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, 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 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.
                                                            LBD04913-01-5
              

 A. 2539                             2
 
   E.  THE  TERM  "LARGE  PRINT FORMAT" SHALL MEAN A PRINTED FONT SIZE OF
 SIXTEEN POINTS OR LARGER.
   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.  LARGE PRINT ARBITRATION CLAUSES IN CONTRACTS. EACH AND EVERY BUSI-
 NESS SHALL, IN EACH  INITIAL  CONTRACT  FOR  GOODS  OR  SERVICES,  WHICH
 CONTAINS  AN  ARBITRATION CLAUSE PROVIDE THE CONSUMER WITH A COPY OF THE
 CONTRACT IN WHICH THE ARBITRATION CLAUSE IS  DISPLAYED  IN  LARGE  PRINT
 FORMAT.
   4.  A VIOLATION BY ANY PERSON OR BUSINESS OF SUBDIVISION THREE OF THIS
 SECTION, IF SUCH VIOLATION CONSTITUTES THE FIRST SUCH  OFFENSE  BY  SUCH
 PERSON, IS PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED TWO HUNDRED FIFTY
 DOLLARS.  A  SECOND  OFFENSE  AND  ANY  OFFENSE  COMMITTED THEREAFTER IS
 PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.