Bill > HB49

This bill amends the Plain Language Consumer Contract Act to enhance consumer protections in form contracts by expanding definitions and establishing new standards for contract terms. The bill broadens the definition of "consumer" and "consumer contract" to include form contracts, which are standardized agreements with terms that consumers cannot meaningfully negotiate. The legislation introduces a new section that addresses the enforceability of standardized contract terms, establishing that terms which materially alter a consumer's legal rights or obligations may not be enforceable. A court will determine materiality by considering factors such as potential surprise or hardship to the consumer, awareness of terms, the nature of the business relationship, and negotiability of contract provisions. The bill creates a rebuttable presumption that certain standardized terms are problematic, including those that restrict intellectual property rights, limit liability, dictate dispute resolution forums, require exclusive product use, mandate subscriptions, or prevent warranty transfers. Critically, a consumer's signature will no longer be automatically considered evidence of understanding these terms. The new provisions will apply to all form contracts executed in Pennsylvania after the effective date, covering both electronic and paper transactions, with the goal of protecting consumers from potentially unfair or obscure contractual provisions.

Business and Industry

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=49