S 4375 New York Senate · 2025 Regular Session

Relates to requiring mandatory arbitration clauses in certain consumer contracts to be disclosed to the consumer

This bill, S 4375, amends existing law concerning mandatory arbitration clauses in consumer contracts for goods and services. It maintains the prohibition against including such clauses in these contracts, declaring them null and void if present. Additionally, the bill introduces a requirement that if a consumer is presented with a contract containing a mandatory arbitration clause, the business representative must clearly disclose and explain it in plain language. For
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 4, 2025 Last action Jan 7, 2026
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What changed between versions

S4375 S4375A · 3 edits
MINOR
This bill amendment narrows the definition of 'consumer goods' by removing 'services' and 'employment' from its scope, and simplifies the definition of 'mandatory arbitration clause' by removing references to employment contracts. These changes limit the bill's protections to consumer goods only, rather than services and employment agreements.
Scope change
The bill's scope was narrowed from covering consumer goods, services, and employment contracts to only covering consumer goods.
DEFINITION

The definition of 'consumer goods' was changed to remove 'services' and 'employment' from the list of items covered.

The definition of 'mandatory arbitration clause' was updated to remove references to employment contracts, limiting it to consumer goods contracts only.

REQUIREMENT

The disclosure requirements for arbitration clauses were updated to apply only to consumer goods contracts, removing obligations related to services and employment.

Floor votes

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Full legislative history

Actions timeline

Total actions
4
Key actions
2
Committee
2
Amendments
2
Jan 7, 2026
Committee
REFERRED TO CONSUMER PROTECTION
upper
May 6, 2025
Upper · Passed
PRINT NUMBER 4375A
upper
May 6, 2025
Upper · Passed
AMEND AND RECOMMIT TO CONSUMER PROTECTION
upper
Feb 4, 2025
Committee
REFERRED TO CONSUMER PROTECTION
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Leroy Comrie
Leroy Comrie
DDemocratic
NY
14