Bill Text: IA SF134 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to consumer contract terms.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2017-02-01 - Subcommittee: Zumbach, Bertrand, and Boulton. S.J. 202. [SF134 Detail]
Download: Iowa-2017-SF134-Introduced.html
Senate File 134 - Introduced SENATE FILE BY QUIRMBACH, DVORSKY, and BOLKCOM A BILL FOR 1 An Act relating to consumer contract terms. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1032XS (7) 87 gh/jh/rj PAG LIN 1 1 Section 1. NEW SECTION. 714.16D Unfair consumer contract 1 2 terms. 1 3 1. For purposes of this section: 1 4 a. "Consumer" means a person who buys, leases, or rents 1 5 merchandise. 1 6 b. "Merchandise" means the same as defined in section 1 7 714.16. 1 8 c. "Person" means the same as defined in section 714.16. 1 9 2. A person shall not include in a contract or proposed 1 10 contract for the sale or lease of merchandise a provision 1 11 waiving a consumer's right to make any statement regarding the 1 12 seller or lessor, the seller's or lessor's employees or agents, 1 13 or the merchandise. 1 14 3. A person shall not include in an agreement evidencing the 1 15 resolution of a dispute regarding a contract made in connection 1 16 with the sale or lease of merchandise a provision barring the 1 17 consumer from communicating information to a governmental 1 18 official or agency, or a representative of a governmental 1 19 official or agency. 1 20 4. A person shall not seek, threaten to enforce, or enforce 1 21 a contract provision or an agreement evidencing the resolution 1 22 of a dispute that violates this section. A person shall not 1 23 penalize a consumer for engaging in any conduct protected by 1 24 this section. 1 25 5. A waiver of any provision of this section is contrary to 1 26 public policy and is void and unenforceable. 1 27 6. An attempt by a person to have a consumer waive any 1 28 rights given in this section is a violation of this section. 1 29 7. A violation of this section is an unlawful practice under 1 30 section 714.16. The remedies and penalties provided by section 1 31 714.16 apply to a violation of this section. 1 32 EXPLANATION 1 33 The inclusion of this explanation does not constitute agreement with 1 34 the explanation's substance by the members of the general assembly. 1 35 This bill forbids the inclusion, in a contract for the 2 1 sale or lease of merchandise, of any provision which would 2 2 prohibit a consumer from making any statement regarding the 2 3 seller, lessor, or the merchandise. The bill also forbids 2 4 the inclusion, in an agreement evidencing the resolution 2 5 of a dispute relating to the sale or lease of merchandise, 2 6 of any provision which would prohibit a consumer from 2 7 communicating information to a governmental official or agency. 2 8 "Merchandise" includes any objects, wares, goods, commodities, 2 9 intangibles, securities, bonds, debentures, stocks, real 2 10 estate or services. Any waiver of a consumer's rights to make 2 11 statements regarding the seller, lessor, or merchandise is void 2 12 and unenforceable. An attempt by a person to have a consumer 2 13 waive the consumer's rights to make a statement regarding the 2 14 seller, lessor, or merchandise is a violation of the new Code 2 15 section and is an unlawful practice under Code section 714.16. 2 16 Under Code section 714.16, with regard to unlawful practices, 2 17 the attorney general has the authority to issue subpoenas, 2 18 hold hearings, adopt administrative rules, and file lawsuits 2 19 to obtain temporary and permanent injunctive relief, consumer 2 20 reimbursement, costs and attorney fees, and civil penalties up 2 21 to $40,000 per violation. LSB 1032XS (7) 87 gh/jh/rj
