Assembly OKs bill requiring larger font for mandatory-arbitration clauses in consumer contracts

The Assembly voted March 12 to require that mandatory arbitration clauses in consumer contracts be printed in at least 16-point font.

Assemblymember Dinowitz, the sponsor, said the bill is intended to make consumers more likely to see and understand arbitration commitments in contracts. "This bill would require mandatory arbitration clauses in consumer contracts to be printed in a large print font of at least 16 points," Dinowitz said during the floor explanation.

Members asked whether the requirement conflicts with other statutory print-size rules. Dinowitz said the bill is intended to supersede prior minimums (the insurance-law 10-point reference was discussed during debate) for the arbitration clause specifically and that the change is a targeted transparency measure rather than a ban on arbitration. Several members expressed support for increased consumer notice; others warned about placing legislative preference against arbitration at odds with the Federal Arbitration Act and questioned the bill—s practical effect.

The Assembly recorded 99 "ayes" and 46 "nos." The clerk announced the act will take effect on the 180th day after enactment. The sponsor said the measure is focused on consumer notice: larger type for clauses that can require arbitration of disputes rather than jury or court trials.

The bill does not itself ban arbitration agreements in all contexts; it prescribes a typographic requirement for consumer-facing arbitration clauses and establishes civil penalties for violations under the relevant enforcement provisions cited on the floor.