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Bill

A 2539

Relates to requiring mandatory arbitration clauses in certain consumer contracts to be printed in large font type

2025 Regular Session Introduced by George Alvarez and 8 co-sponsors

Bill Summary: A 2539 Main Purpose and IntentThis bill aims to require that any mandatory arbitration clause in a consumer contract be printed in large font type, making it more pro

REFERRED TO CONSUMER PROTECTION
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Bill Summary · A 2539

Bill Summary: A 2539

Main Purpose and Intent

This bill aims to require that any mandatory arbitration clause in a consumer contract be printed in large font type, making it more prominent and easily readable for consumers. The goal is to ensure that consumers are fully aware of the existence and implications of such arbitration clauses when entering into contracts.

Key Provisions

  • Mandates that any mandatory arbitration clause in a consumer contract must be printed in font size no smaller than 12 point.
  • Applies to all consumer contracts, including those for goods, services, loans, credit cards, and other financial products.
  • Requires the arbitration clause to be clearly separated from other contract terms and labeled as an "ARBITRATION CLAUSE" in bold font.
  • Prohibits companies from including mandatory arbitration clauses in consumer contracts unless they comply with the large font size requirement.
  • Provides for civil penalties of up to $1,000 per violation for companies that fail to comply.

Affected Parties

  • Consumers entering into various types of contracts with businesses, who would benefit from greater transparency around arbitration terms.
  • Companies that offer consumer goods, services, financial products, etc., which would need to adjust their contract formatting to meet the new requirements.
  • The court system, which may see a decrease in consumer arbitration cases if the bill leads to fewer mandatory arbitration clauses being included.

Procedural and Timeline Aspects

  • The bill was introduced on January 17, 2025 and has been referred to the Consumer Protection committee for consideration.
  • If passed, the new requirements would go into effect 90 days after the bill is signed into law.
  • The bill is related to several prior-session bills (A 9544, A 5246, etc.) that have sought to address transparency issues around mandatory arbitration clauses.

Compiled from official sources — confirm details with the bill’s official record.

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