HB 49
An Act amending the act of June 23, 1993 (P.L.128, No.29), known as the Plain Language Consumer Contract Act, further providing for definitions and providing for standardized terms in form contracts.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill amends Pennsylvania’s Plain Language Consumer Contract Act to strengthen consumer protections in form contracts. It clarifies definitions related to ‘consumer’ and ‘form contract,’ and introduces a new provision that makes standardized terms in form contracts unenforceable if they materially alter a consumer’s legal rights or obligations. The bill aims to prevent deceptive or unfair contract terms by requiring courts to consider various factors when determining whether a term is unduly burdensome or restrictive to the consumer.
Key provisions
- Defines ‘consumer’ and ‘form contract’ more precisely.
- Establishes that standardized terms in form contracts are unenforceable if they materially alter a consumer’s rights.
- Requires courts to consider multiple factors when determining if a standardized term is ‘material’.
- Lists specific standardized terms that will be presumed to materially alter a contract (e.g., restrictions on intellectual property, limitations on resale rights, and limitations on liability).
- States that a consumer’s signature does not automatically indicate awareness of standardized terms.
- Applies to form contracts executed after the law’s effective date.
- Excludes certain contracts from the application of this section.
- Provides for a 60-day period for the act to take effect.
Who is affected
- Consumers
- Businesses that use form contracts
- Merchants
- Retailers
- Service providers
Notable changes
Sponsors
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Primary sponsor
Cosponsors
Benjamin Sanchez
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