New York S 2201: Relates to requiring mandatory arbitration clauses in certain consumer contracts to be printed in large font type

Bill Text

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S02201 Summary:

BILL NOS02201 

&nbsp

SAME ASSAME AS A02539

&nbsp

SPONSORCOMRIE

&nbsp

COSPNSRSEPULVEDA

&nbsp

MLTSPNSR

&nbsp

Amd §399-c, Gen Bus L

&nbsp

Requires mandatory arbitration clauses in certain consumer contracts to be printed in large font type.

Go to top S02201 Actions:

BILL NOS02201 

&nbsp

01/15/2025REFERRED TO CONSUMER PROTECTION

01/07/2026REFERRED TO CONSUMER PROTECTION

Go to topS02201 Committee&nbspVotes:

Go to topS02201 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS02201 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2201

 2025-2026 Regular Sessions

 IN SENATE

 January 15, 2025
 ___________

 Introduced by Sens. COMRIE, SEPULVEDA -- read twice and ordered printed,
 and when printed to be committed to the Committee on Consumer
 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.
 LBD04913-01-5

 S. 2201 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