New York S04375 mandates disclosure and explanation of mandatory arbitration clauses in consumer contracts.

New York S04375 amends the general business law to require that mandatory arbitration clauses in consumer contracts be disclosed and explained to consumers. Specifically, the bill mandates that any representative of a company must inform consumers about the presence of such clauses and provide a clear explanation in plain language. Additionally, contracts must include information about the arbitration clause and a link to a detailed explanation. The bill prohibits mandatory arbitration clauses in contracts for the sale or purchase of consumer goods.

New York S04375 mandates disclosure and explanation of mandatory arbitration clauses in consumer contracts.

New York S04375 amends the general business law to require that mandatory arbitration clauses in consumer contracts be disclosed and explained to consumers. Specifically, the bill mandates that any representative of a company must inform consumers about the presence of such clauses and provide a clear explanation in plain language. Additionally, contracts must include information about the arbitration clause and a link to a detailed explanation. The bill prohibits mandatory arbitration clauses in contracts for the sale or purchase of consumer goods.