Existing law regulates the formation and enforcement of contracts, including imposing certain restrictions on the terms of a contract for the sale or lease of consumer goods or services. In this regard, existing law prohibits a provision waiving the consumer's right to make any statement regarding the seller, lessor, or its employees or agents, or concerning the goods or services. Existing law also prohibits a consumer service contract from limiting a consumer's ability to file a complaint with a licensing board that regulates the consumer service provider or to participate in the board's investigation into the consumer service provider, as specified.
This bill would, for contracts for the sale or lease of consumer goods or services entered into on or after January 1, 2026, require an agreement to arbitrate to be limited to a claim arising out of the contract containing the agreement to arbitrate. The bill would make a violation of this requirement or a waiver of these provisions void and unenforceable, as provided.