Bill Text: NY A10331 | 2019-2020 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-04-29 - referred to consumer affairs and protection [A10331 Detail]
Download: New_York-2019-A10331-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10331 IN ASSEMBLY April 29, 2020 ___________ Introduced by M. of A. DenDEKKER -- read once and referred to the Committee on Consumer Affairs and 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: 1 Section 1. The general business law is amended by adding a new section 2 399-k to read as follows: 3 § 399-k. Non-disparagement clauses in consumer contracts or services 4 prohibited. 1. Definitions. 5 a. The term "consumer" shall mean a natural person residing in this 6 state. 7 b. The term "consumer goods" shall mean goods, wares, paid merchandise 8 or services purchased or paid for by a consumer, the intended use or 9 benefit of which is intended for the personal, family or household 10 purposes of such consumer. 11 c. The term "consumer services" shall mean services provided to 12 consumers including, but not limited to, legal services, medical 13 services or cleaning services. 14 d. The term "non-disparagement clause" shall mean a provision waiving 15 the consumer's right to make any statement regarding a seller or lessor 16 or its employees or agents, or concerning the goods or services. 17 2. Prohibition. a. A contract or proposed contract for the sale or 18 lease of consumer goods or services may not include a non-disparagement 19 clause. The inclusion of such clause in a contract or proposed contract 20 for the sale or lease of consumer goods or services shall not serve to 21 impair the enforceability of any other provision of such contract. 22 b. It shall be unlawful to threaten or to seek to enforce a non-dis- 23 paragement clause made unlawful under this section, or to otherwise 24 penalize a consumer for making any statement protected under this 25 section. The inclusion of such clause in a written contract for the sale 26 or purchase of consumer goods shall not serve to impair the enforceabil- 27 ity of any other provision of such contract. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07331-01-9A. 10331 2 1 c. Any waiver of the provisions of this section is contrary to public 2 policy, and is void and unenforceable. 3 3. Penalty. a. Any person who violates this section shall be subject 4 to a civil penalty not to exceed five hundred dollars for the first 5 violation, and one thousand dollars for the second and for each subse- 6 quent violation, to be assessed and collected in a civil action brought 7 by the attorney general. 8 b. Any person who seeks to enforce a non-disparagement clause made 9 unlawful under this section or otherwise penalize a consumer for making 10 any statement protected under this section shall be subject to a civil 11 penalty not to exceed five thousand dollars to be assessed and collected 12 in a civil action by the attorney general. 13 c. Any consumer damaged by a violation of this section may bring an 14 action for recovery of damages. Judgment may be entered in an amount not 15 to exceed three times the actual damages plus reasonable attorney's 16 fees. The penalty provided by this section is not an exclusive remedy, 17 and does not affect any other relief or remedy provided by law. This 18 section shall not be construed to prohibit or limit a person or business 19 that hosts online consumer reviews or comments from removing a statement 20 that is otherwise lawful to remove. 21 § 2. This act shall take effect on the ninetieth day after it shall 22 have become a law.