Print
Senate File 134 - IntroducedA Bill ForAn Act 1relating to consumer contract terms.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 714.16D Unfair consumer contract
2terms.
31. For purposes of this section:
4a. “Consumer” means a person who buys, leases, or rents
5merchandise.
6b. “Merchandise” means the same as defined in section
7714.16.
8c. “Person” means the same as defined in section 714.16.
92. A person shall not include in a contract or proposed
10contract for the sale or lease of merchandise a provision
11waiving a consumer’s right to make any statement regarding the
12seller or lessor, the seller’s or lessor’s employees or agents,
13or the merchandise.
143. A person shall not include in an agreement evidencing the
15resolution of a dispute regarding a contract made in connection
16with the sale or lease of merchandise a provision barring the
17consumer from communicating information to a governmental
18official or agency, or a representative of a governmental
19official or agency.
204. A person shall not seek, threaten to enforce, or enforce
21a contract provision or an agreement evidencing the resolution
22of a dispute that violates this section. A person shall not
23penalize a consumer for engaging in any conduct protected by
24this section.
255. A waiver of any provision of this section is contrary to
26public policy and is void and unenforceable.
276. An attempt by a person to have a consumer waive any
28rights given in this section is a violation of this section.
297. A violation of this section is an unlawful practice under
30section 714.16. The remedies and penalties provided by section
31714.16 apply to a violation of this section.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill forbids the inclusion, in a contract for the
-1-1sale or lease of merchandise, of any provision which would
2prohibit a consumer from making any statement regarding the
3seller, lessor, or the merchandise. The bill also forbids
4the inclusion, in an agreement evidencing the resolution
5of a dispute relating to the sale or lease of merchandise,
6of any provision which would prohibit a consumer from
7communicating information to a governmental official or agency.
8“Merchandise” includes any objects, wares, goods, commodities,
9intangibles, securities, bonds, debentures, stocks, real
10estate or services. Any waiver of a consumer’s rights to make
11statements regarding the seller, lessor, or merchandise is void
12and unenforceable. An attempt by a person to have a consumer
13waive the consumer’s rights to make a statement regarding the
14seller, lessor, or merchandise is a violation of the new Code
15section and is an unlawful practice under Code section 714.16.
16Under Code section 714.16, with regard to unlawful practices,
17the attorney general has the authority to issue subpoenas,
18hold hearings, adopt administrative rules, and file lawsuits
19to obtain temporary and permanent injunctive relief, consumer
20reimbursement, costs and attorney fees, and civil penalties up
21to $40,000 per violation.
-2-gh/jh/rj
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 714.16D Unfair consumer contract
2terms.
31. For purposes of this section:
4a. “Consumer” means a person who buys, leases, or rents
5merchandise.
6b. “Merchandise” means the same as defined in section
7714.16.
8c. “Person” means the same as defined in section 714.16.
92. A person shall not include in a contract or proposed
10contract for the sale or lease of merchandise a provision
11waiving a consumer’s right to make any statement regarding the
12seller or lessor, the seller’s or lessor’s employees or agents,
13or the merchandise.
143. A person shall not include in an agreement evidencing the
15resolution of a dispute regarding a contract made in connection
16with the sale or lease of merchandise a provision barring the
17consumer from communicating information to a governmental
18official or agency, or a representative of a governmental
19official or agency.
204. A person shall not seek, threaten to enforce, or enforce
21a contract provision or an agreement evidencing the resolution
22of a dispute that violates this section. A person shall not
23penalize a consumer for engaging in any conduct protected by
24this section.
255. A waiver of any provision of this section is contrary to
26public policy and is void and unenforceable.
276. An attempt by a person to have a consumer waive any
28rights given in this section is a violation of this section.
297. A violation of this section is an unlawful practice under
30section 714.16. The remedies and penalties provided by section
31714.16 apply to a violation of this section.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill forbids the inclusion, in a contract for the
-1-1sale or lease of merchandise, of any provision which would
2prohibit a consumer from making any statement regarding the
3seller, lessor, or the merchandise. The bill also forbids
4the inclusion, in an agreement evidencing the resolution
5of a dispute relating to the sale or lease of merchandise,
6of any provision which would prohibit a consumer from
7communicating information to a governmental official or agency.
8“Merchandise” includes any objects, wares, goods, commodities,
9intangibles, securities, bonds, debentures, stocks, real
10estate or services. Any waiver of a consumer’s rights to make
11statements regarding the seller, lessor, or merchandise is void
12and unenforceable. An attempt by a person to have a consumer
13waive the consumer’s rights to make a statement regarding the
14seller, lessor, or merchandise is a violation of the new Code
15section and is an unlawful practice under Code section 714.16.
16Under Code section 714.16, with regard to unlawful practices,
17the attorney general has the authority to issue subpoenas,
18hold hearings, adopt administrative rules, and file lawsuits
19to obtain temporary and permanent injunctive relief, consumer
20reimbursement, costs and attorney fees, and civil penalties up
21to $40,000 per violation.
-2-gh/jh/rj