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.

PRINTER'S NO.   39

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 49
                                                Session of
                                                  2025

     INTRODUCED BY HOWARD, CONKLIN, KUZMA, GIRAL, PIELLI, KENYATTA,
        SANCHEZ, WARREN, CEPEDA-FREYTIZ AND HILL-EVANS,
        JANUARY 14, 2025

     REFERRED TO COMMITTEE ON COMMUNICATIONS AND TECHNOLOGY,
        JANUARY 14, 2025


                                     AN ACT
 1   Amending the act of June 23, 1993 (P.L.128, No.29), entitled "An
 2      act requiring certain contracts to be written in plain
 3      language; and providing remedies and penalties," further
 4      providing for definitions and providing for standardized
 5      terms in form contracts.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.    Section 3 of the act of June 23, 1993 (P.L.128,
 9   No.29), known as the Plain Language Consumer Contract Act, is
10   amended to read:
11   Section 3.   Definitions.
12      The following words and phrases when used in this act shall
13   have the meanings given to them in this section unless the
14   context clearly indicates otherwise:
15      "Consumer."     Any individual who borrows, buys, leases or
16   obtains credit, money, services or property under a consumer
17   contract or form contract.
18      "Consumer contract" or "contract."    A written agreement
 1   between a consumer and a party acting in the usual course of
 2   business, made primarily for personal, family or household
 3   purposes in which a consumer does any of the following:
 4            (1)   Borrows money.
 5            (2)   Buys, leases or rents personal property, real
 6      property or services for cash or on credit.
 7            (3)   Obtains credit.
 8      "Form contract."    A consumer contract with standardized terms
 9   used by a merchant acting in the course of selling or leasing
10   the merchant's goods or services to a consumer without a
11   meaningful opportunity for the consumer to negotiate the
12   standardized terms. As used in this definition, terms in which
13   the consumer selects from various standardized provisions
14   offered by the merchant shall not be regarded as negotiated.
15      Section 2.    The act is amended by adding a section to read:
16   Section 5.1.    Standardized terms in form contracts.
17      (a)   Enforceability.--If a merchant presents a form contract
18   to a consumer containing standardized terms that would
19   materially alter the consumer's legal rights or obligations
20   under the form contract, the standardized terms are not
21   enforceable, regardless of whether the form contract would
22   otherwise be construed as enforceable.
23      (b)   Materiality.--Whether a standardized term materially
24   alters a form contract is to be decided by a court after
25   consideration of all of the following factors:
26            (1)   Whether the standardized term would cause surprise
27      or hardship for the consumer.
28            (2)   Whether the consumer was expressly aware of the
29      standardized term.
30            (3)   Whether the consumer had reasonable notice of the

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 1      standardized term.
 2            (4)   The nature of the merchant's business and its
 3      relationship with the consumer.
 4            (5)   The extent to which all terms of the form contract,
 5      including the standardized term, were negotiable.
 6            (6)   Whether adequate and reasonable consideration was
 7      provided for the standardized term by other terms within the
 8      form contract.
 9            (7)   Any other reasonable factor brought to the attention
10      of the court.
11      (c)   Rebuttable presumption.--The following carry a
12   rebuttable presumption of materially altering a form contract:
13            (1)   a standardized term that would unreasonably restrict
14      or waive a consumer's rights to the consumer's intellectual
15      property;
16            (2)   standardized terms that limit the consumer's
17      ownership of intellectual property reasonably assumed to be
18      sold or licensed as part of the transaction;
19            (3)   standardized terms that limit the consumer's right
20      to resell or transfer;
21            (4)   standardized terms that limit the merchant's or
22      manufacturer's liability;
23            (5)   standardized terms that dictate a legal forum for
24      dispute resolution;
25            (6)   standardized terms that require exclusive use of a
26      product or service of the merchant;
27            (7)   standardized terms that require a subscription to a
28      service;
29            (8)   standardized terms that prevent the transfer of
30      warranties; or

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 1            (9)   standardized terms that require the consumer to
 2      exclusively use parts or repair services stipulated by the
 3      merchant or manufacturer.
 4      (d)   Signature as evidence.--A consumer's signature, whether
 5   printed, typed or electronically signed, or by any other
 6   confirmation, shall not be regarded as evidence of awareness of
 7   a standardized term.
 8      (e)   Applicability.--This section applies to all form
 9   contracts executed in this Commonwealth after the effective date
10   of this subsection and regardless of whether the form contract
11   is presented as part of an electronic or paper transaction, with
12   the exception of a contract excluded by section 4(b).
13      Section 3.    This act shall take effect in 60 days.




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