Every web site, app, and home electronic device includes a boilerplate contract that a person must agree to in order to use, the obligatory “Terms of Service.” Studies have repeatedly shown the great majority of signatories do not read these long contracts, and further evidence shows even those who do read the contracts rarely understand what they’re agreeing to.

While absurd, the courts have generally found these generic contracts (known variously as “shrinkwrap,” “clickwrap” and “browsewrap”) are enforceable, reasoning that the user meaningfully consented to the non-negotiated terms they entered into without legal counsel. While some terms are, in fact, reasonably related to what a person would expect when buying a good or service, many impose restrictions or waivers of rights that would come as a legitimate surprise. Buying a toaster should not mean a person has agreed to have the toaster serviced only by the toaster manufacturer, and signing up to use a social media site should not mean a person has agreed to waive their privacy to the company selling the service.

To address these abuses, we will soon re-introduce legislation modifying the Pennsylvania Plain Language Act to specify that certain non-negotiated terms in consumer contracts are presumed unenforceable if not reasonably related to the purposes of the sale or service agreement. We can all benefit by making the law work in a manner that is more intuitively obvious and fair to the average person, and we hope you will join us in cosponsoring this important legislation.

Previous co-sponsors of HB2290 were: WAXMAN, KHAN, HILL-EVANS, SANCHEZ, DELLOSO, D. WILLIAMS, WARREN, KUZMA, and GREEN.

Statutes/Laws affected:
Printer's No. 0039: P.L.128, No.29