Bill Text: NY A10331 | 2019-2020 | General Assembly | Introduced

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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

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                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.
                                                                   LBD07331-01-9
        A. 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.