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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
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*hb0103*
HOUSE BILL 103
I3 (6lr0878)
ENROLLED BILL
— Economic Matters/Finance —
Introduced by Delegate Stewart
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Consumer Protection – Consumer Contracts – Prohibited Waiver Waivers 2
FOR the purpose of repealing altering certain exemptions relating to a prohibition on a 3
consumer contract that sets a shorter time to bring an action under or on the 4
consumer contract under certain circumstances; prohibiting a consumer contract 5
from waiving, limiting, impairing, or disclaiming any right conferred or created or a 6
manner of enforcement established statutory or punitive damages certain remedies 7
if authorized by federal or State law , subject to certain exemptions and a certain 8
exception; establishing that a violation of this Act is an unfair, abusive, or deceptive 9
trade practice subject to enforcement and certain civil penalties; prohibiting a waiver 10
by agreement of certain provisions of this Act , except under certain circumstances ; 11
and generally relating to consumer contracts. 12
BY repealing and reenacting, with amendments, 13
Article – Commercial Law 14
2 HOUSE BILL 103
Section 13–301(14)(xlvii) 1
Annotated Code of Maryland 2
(2025 Replacement Volume) 3
BY repealing and reenacting, without amendments, 4
Article – Commercial Law 5
Section 13–301(14)(xlviii) 6
Annotated Code of Maryland 7
(2025 Replacement Volume) 8
BY adding to 9
Article – Commercial Law 10
Section 13–301(14)(xlix) 11
Annotated Code of Maryland 12
(2025 Replacement Volume) 13
BY repealing and reenacting, with amendments, 14
Article – Commercial Law 15
Section 14–1328 16
Annotated Code of Maryland 17
(2025 Replacement Volume) 18
(As enacted by Chapter 194 of the Acts of the General Assembly of 2025) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Commercial Law 22
13–301. 23
Unfair, abusive, or deceptive trade practices include any: 24
(14) Violation of a provision of: 25
(xlvii) Title 14, Subtitle 50 of this article; [or] 26
(xlviii) Section 13–411.1(c)(2) of the Transportation Article; or 27
(XLIX) SECTION 14–1328 OF THIS ARTICLE; OR 28
14–1328. 29
(a) (1) In this section [, “consumer ] THE FOLLOWING WORDS HAVE THE 30
MEANINGS INDICATED. 31
HOUSE BILL 103 3
(2) “CONSUMER” HAS THE MEANING STAT ED IN § 13–101 OF THIS 1
ARTICLE. 2
(3) “CONSUMER contract” means a contract involvi ng the sale, lease, or 3
provision of goods or services that are for personal, family, or household purposes. 4
(b) [This section does not apply to: 5
(1) Any consumer contract provided by a business, including an affiliate or 6
a subsidiary of the business, that is doing business under a license, franchise agreement, 7
certificate, or other authorization issued by a State agency, political subdivision, or public 8
utility commission A CONSUMER CONTRACT FO R A SERVICE PROVIDED BY A 9
SELF–SERVICE STORAGE FACILITY, AS DEFINED IN § 18–501 OF THIS ARTICLE; 10
(2) A service regulated by: 11
(i) The Maryland Public Service Commission; 12
(ii) The Federal Communications Commission; or 13
(iii) The Federal Energy Regulatory Commission; or 14
(3) A person or business licensed to provide security system services under 15
Title 18 of the Business Occupations and Professions Article. 16
(c)] (1) A provision THE EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 17
SUBSECTION, THE FOLLOWING PROVISIONS in a consumer contract that [sets a shorter 18
time to bring an action under or on the consumer contract than required by the law of the 19
State when the consumer contract is issued or delivered ] WAIVES, LIMITS, IMPAIRS, OR 20
DISCLAIMS A RIGHT CO NFERRED OR CREATED O R A MANNER OF ENFORC EMENT 21
ESTABLISHED BY FEDERAL OR STATE LAW is ARE against State public policy, illegal, 22
and void, INCLUDING A: 23
(1) (I) A PROVISION THAT WAIVE S, LIMITS, IMPAIRS, OR 24
DISCLAIMS STATUTORY OR PUNITIV E DAMAGES THE FOLLOWING REMEDI ES IF 25
AUTHORIZED BY FEDERAL OR STATE LAW: 26
1. STATUTORY DAMAGES; 27
2. PUNITIVE DAMAGES, INCLUDING FOR INTENT IONAL, 28
KNOWING, OR RECKLESS VIOLATIONS OF LAW; 29
3. DECLARATORY RELIEF; OR 30
4. INJUNCTIVE RELIEF; AND 31
4 HOUSE BILL 103
(2) (II) A PROVISION THAT SETS A SHORTER TIME TO BR ING AN 1
ACTION UNDER OR ON T HE CONSUMER CONTRACT THAN REQUIRED BY STATE LAW 2
WHEN THE CONSUMER CONTRACT WAS ISSUED OR DELIVERED. 3
(2) A PROVISION IN A CONSUMER CONTRACT MAY LIMIT RECOVERY OF 4
STATUTORY OR PUNITIV E DAMAGES AUTHORIZED B Y FEDERAL OR STATE LAW TO 5
THE EXTENT OF THE APPLICABLE LIMIT OF INSURANCE COVERAGE. 6
[(d)] (C) If a consumer contract contains a provision that is illegal under this 7
section: 8
(1) A court [may]: 9
(I) MAY not give effect to the provision; and 10
(II) SHALL ENFORCE THE REM AINDER OF THE CONSUM ER 11
CONTRACT TO THE EXTENT PRACTICABLE; AND 12
(2) A defense to liability under the consumer contract may not be based on 13
the [shorter limitation period] PROVISION. 14
(D) (1) A VIOLATION OF THIS SECTION IS: 15
(I) AN UNFAIR , ABUSIVE, OR DECEPTIVE TRADE P RACTICE 16
WITHIN THE MEANING OF TITLE 13 OF THIS ARTICLE; AND 17
(II) SUBJECT TO THE ENFORC EMENT AND PENALTY 18
PROVISIONS CONTAINED IN TITLE 13 OF THIS ARTICLE, EXCEPT § 13–411 OF THIS 19
ARTICLE. 20
(2) IN ADDITION TO AN ACT ION FOR DAMAGES UNDE R § 13–408 OF 21
THIS ARTICLE, A PERSON MAY BRING AN ACTION FOR DECLARATORY RELIEF OR AN 22
INJUNCTION TO PROHIB IT A PERSON WHO HAS ENGAGED OR IS ENGAGI NG IN A 23
VIOLATION OF THIS SE CTION FROM ENGAGING IN OR CONTI NUING TO ENGAGE IN 24
THE VIOLATION. 25
(E) (D) (E) (1) THIS SECTION SHALL BE CONSTRUED TO APPLY E QUALLY 26
AND WITHOUT FAVORABL E TREATMENT TO A CON SUMER CONTRACT WITH OR 27
WITHOUT AN ARBITRATION PROVISION. 28
(2) THIS SECTION MAY NOT BE CONSTRUED TO: 29
HOUSE BILL 103 5
(I) INVALIDATE AN ARBITRA TION PROVISION THAT IS 1
ENFORCEABLE UNDER THE FEDERAL ARBITRATION ACT; OR 2
(II) PROHIBIT A PROVISION IN A CONSUMER CONTRA CT THAT 3
GRANTS A CONSUMER A RIGHT OR A MANNER OF ENFORCEMENT MORE EXPANSIVE 4
OR EXTENSIVE THAN A RIGHT CONFERRED OR CREATED OR A MEANS OR MANNER OF 5
ENFORCEMENT ESTABLIS HED CREATE A RIGHT OR REM EDY NOT OTHERWISE 6
PROVIDED BY FEDERAL OR STATE LAW. 7
(3) (I) A PROVISION OF THIS SE CTION MAY NOT BE WAI VED BY 8
AGREEMENT. 9
(II) A CONSUMER MAY WAIVE A RIGHT CONFERRED OR 10
CREATED OR A MANNER OF ENFORCEMENT ESTAB LISHED BY FEDERAL OR STATE 11
LAW AS PART OF A SETTLEMENT OF A DISPUTE OR AN ACTION, UNLESS OTHERWISE 12
PROHIBITED BY FEDERAL LAW. 13
SECTION 2. AND BE IT FURTHER ENACTED, That, if any provision of this Act or 14
the application of any provision of this Act to any person or circumstance is held invalid for 15
any reason in a court of competent jurisdiction, the invalidity does not affect other 16
provisions or any other application of this Act that can be given effect without the invalid 17
provision or application, and for this purpose the provisions of this Act are declared 18
severable. 19
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall be construed to 20
apply only prospectively and may not be applied or interprete d to have any effect on or 21
application to any contract entered into before the effective date of this Act. 22
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect on 23
the later of October 1, 2026, or the taking effect of Chapter 194 of the A cts of the General 24
Assembly of 2025, if the effective date of Chapter 194 is amended. 25
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.