New York State Assembly

 
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A01865 Summary:

A01865 Actions:

A01865 Committee Votes:

Committee:CONSUMER AFFAIRS AND PROTECTION   Chair:Rozic      
DATE:01/19/2022AYE/NAY:16/0  Action: Favorable refer to committee Codes        
Rozic
Aye
Mikulin
Aye
Abbate
Aye
McDonough
Aye
Quart
Aye
Miller
Aye
Simon
Aye
Giglio
Aye
Niou
Aye
Pheffer Amato
Aye
Williams
Aye
Fall
Aye
Burgos
Aye
Gallagher
Aye
Rajkumar
Aye
Forrest
Aye

Committee:CODES   Chair:Dinowitz      
DATE:02/01/2022AYE/NAY:14/7  Action: Favorable         
Dinowitz
Aye
Morinello
Nay
Pretlow
Aye
Giglio
Nay
Cook
Aye
Montesano
Nay
Cymbrowitz
Aye
Reilly
Nay
O'Donnell
Excused
Mikulin
Nay
Lavine
Aye
Tannousis
Nay
Perry
Aye
Abinanti
Aye
Weprin
Aye
Hevesi
Aye
Seawright
Aye
Rosenthal
Aye
Walker
Aye
Vanel
Nay
Cruz
Aye
Carroll
Aye

A01865 Floor Votes:

A01865 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1865
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 11, 2021
                                       ___________
 
        Introduced  by M. of A. DINOWITZ, WEPRIN, GALEF, WILLIAMS, COLTON, GOTT-
          FRIED, SEAWRIGHT, BARRON -- 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:
 
     1    Section  1.  Section  399-c  of  the general business law, as added by
     2  chapter 946 of the laws of 1984, is amended to read as follows:
     3    § 399-c. Mandatory arbitration clauses in certain  consumer  contracts
     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 "mandatory  arbitration  clause"  shall  mean  a  term  or
    12  provision  contained  in  a written contract for the sale or purchase of
    13  consumer goods which requires the parties to such contract to submit any
    14  controversy thereafter arising under such contract to arbitration  prior
    15  to  the  commencement  of  any legal action to enforce the provisions of
    16  such contract and which also further provides  language  to  the  effect
    17  that  the  decision  of  the  arbitrator  or panel of arbitrators in its
    18  application to the consumer party shall be  final  and  not  subject  to
    19  court review.
    20    d.  The  term  "arbitration"  shall  mean the use of a decision making
    21  forum conducted by an arbitrator or  panel  of  arbitrators  within  the
    22  meaning  and  subject  to  the provisions of article seventy-five of the
    23  civil practice law and rules.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05263-01-1
        A. 1865                             2
 
     1    e. The term "large print format" shall mean a  printed  font  size  of
     2  sixteen points or larger.
     3    2.  a.  Prohibition.  No  written contract for the sale or purchase of
     4  consumer goods, entered into on or after  the  effective  date  of  this
     5  section, to which a consumer is a party, shall contain a mandatory arbi-
     6  tration clause.  Nothing contained herein shall be construed to prohibit
     7  a non-consumer party from incorporating a provision within such contract
     8  that  such non-consumer party agrees that the decision of the arbitrator
     9  or panel of arbitrators shall be final in its application to  such  non-
    10  consumer party and not subject to court review.
    11    b.  Mandatory  arbitration  clause  null and void. The provisions of a
    12  mandatory arbitration clause shall be null and void.  The  inclusion  of
    13  such  clause  in a written contract for the sale or purchase of consumer
    14  goods shall  not  serve  to  impair  the  enforceability  of  any  other
    15  provision of such contract.
    16    3.  Large print arbitration clauses in contracts. Each and every busi-
    17  ness shall, in each  initial  contract  for  goods  or  services,  which
    18  contains  an  arbitration clause provide the consumer with a copy of the
    19  contract in which the arbitration clause is  displayed  in  large  print
    20  format.
    21    4.  A violation by any person or business of subdivision three of this
    22  section, if such violation constitutes the first such  offense  by  such
    23  person, is punishable by a civil penalty not to exceed two hundred fifty
    24  dollars.  A  second  offense  and  any  offense  committed thereafter is
    25  punishable by a civil penalty not to exceed five hundred dollars.
    26    § 2. This act shall take effect on the one hundred eightieth day after
    27  it shall have become a law.