Bill Text: CA AB2365 | 2013-2014 | Regular Session | Chaptered

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Bill Title: Contracts: unlawful contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-09 - Chaptered by Secretary of State - Chapter 308, Statutes of 2014. [AB2365 Detail]

Download: California-2013-AB2365-Chaptered.html

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BILL NUMBER: AB 2365	CHAPTERED
	BILL TEXT

	CHAPTER  308
	FILED WITH SECRETARY OF STATE  SEPTEMBER 9, 2014
	APPROVED BY GOVERNOR  SEPTEMBER 9, 2014
	PASSED THE SENATE  AUGUST 13, 2014
	PASSED THE ASSEMBLY  AUGUST 18, 2014
	AMENDED IN SENATE  AUGUST 11, 2014
	AMENDED IN SENATE  JUNE 12, 2014
	AMENDED IN ASSEMBLY  APRIL 24, 2014

INTRODUCED BY   Assembly Member John A. Pérez

                        FEBRUARY 21, 2014

   An act to add Section 1670.8 to the Civil Code, relating to
contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2365, John A. Pérez. Contracts: unlawful contracts.
   Existing law generally regulates formation and enforcement of
contracts, including what constitutes an unlawful contract. Under
existing law a contract is unlawful if it is contrary to an express
provision of law, contrary to the policy of express law, though not
expressly prohibited, or otherwise contrary to good morals.
   This bill would prohibit a contract or proposed contract for the
sale or lease of consumer goods or services from including a
provision waiving the consumer's right to make any statement
regarding the seller or lessor or its employees or agents, or
concerning the goods or services. The bill would make it unlawful to
threaten or to seek to enforce, a provision made unlawful under the
bill, or to otherwise penalize a consumer for making any statement
protected under the bill. The bill would impose civil penalties upon
any person who violates the provisions of the bill, of $2,500 for the
initial violation and $5,000 for each subsequent violation, as well
as an additional penalty of $10,000 if the violation was willful,
intentional, or reckless. The bill would authorize the consumer, the
Attorney General, or a district attorney or city attorney to bring a
civil action for a violation of the provisions of the bill. The bill
would provide that the penalty set forth in the bill is not an
exclusive remedy, and does not affect any other relief or remedy
provided by law. The bill would not prohibit or limit a person or
business that hosts online consumer reviews or comments from removing
a statement that is otherwise lawful to remove.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1670.8 is added to the Civil Code, to read:
   1670.8.  (a) (1) A contract or proposed contract for the sale or
lease of consumer goods or services may not include a provision
waiving the consumer's right to make any statement regarding the
seller or lessor or its employees or agents, or concerning the goods
or services.
   (2) It shall be unlawful to threaten or to seek to enforce a
provision made unlawful under this section, or to otherwise penalize
a consumer for making any statement protected under this section.
   (b) Any waiver of the provisions of this section is contrary to
public policy, and is void and unenforceable.
   (c) Any person who violates this section shall be subject to a
civil penalty not to exceed two thousand five hundred dollars
($2,500) for the first violation, and five thousand dollars ($5,000)
for the second and for each subsequent violation, to be assessed and
collected in a civil action brought by the consumer, by the Attorney
General, or by the district attorney or city attorney of the county
or city in which the violation occurred. When collected, the civil
penalty shall be payable, as appropriate, to the consumer or to the
general fund of whichever governmental entity brought the action to
assess the civil penalty.
   (d) In addition, for a willful, intentional, or reckless violation
of this section, a consumer or public prosecutor may recover a civil
penalty not to exceed ten thousand dollars ($10,000).
   (e) The penalty provided by this section is not an exclusive
remedy, and does not affect any other relief or remedy provided by
law. This section shall not be construed to prohibit or limit a
person or business that hosts online consumer reviews or comments
from removing a statement that is otherwise lawful to remove.