Senate committee hears bill barring one‑sided contracts from shortening Maryland’s three‑year civil statute

Senate Bill 413 would prevent businesses from shortening Maryland’s default three‑year civil statute of limitations by burying shorter limitation periods in consumer contracts that the consumer did not negotiate.

Sponsor Senator Katie Walsh Walstreicher told the Finance Committee the bill focuses on “flypaper” or adhesion contracts presented to consumers without meaningful bargaining power — for example, long online terms and conditions — and would preserve the legislature’s default three‑year limit for consumer contracts.

Consumer advocates including the National Association of Consumer Advocates, Consumer Auto Maryland and Maryland Legal Aid testified in support. Professor Jeff Sovereign of the University of Maryland Carey School of Law explained the problem in plain terms: “Some bad actors bury terms in fine print to avoid accountability for defective products and services,” he said, and added that many consumers do not understand contract terms or have bargaining power to change them.

The Maryland Bankers Association registered concern that the bill’s criminal penalties could inadvertently criminalize long‑standing contract language if not clarified; the association asked for a narrow technical amendment and a delayed effective date to allow banks and other businesses time to audit and, if necessary, update contract language. Senator Wallstreicher said she and the bill’s House sponsor were working with bankers on a friendly amendment to address the implementation window and to ensure the measure is prospective.

Ending: Committee members were supportive in principle and asked technical questions about transitional deadlines and how the statute would interact with other contracting contexts; no vote was recorded during the hearing.