plain-language law

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Plain-language law is a type of law that requires consumer contracts to be written in nontechnical, easily understood language. The purpose of these laws is to restrict the use of needlessly confusing language that serves to mislead consumers. The types of contracts that are covered by plain-language laws typically include residential leases, loan agreements, software licenses, and insurance contracts.

New York’s General Obligations Law §5-702 is a prototypical plain-language law, requiring that contracts for leases and household services be “written in a clear and coherent manner using words with common and every day meanings.” The law also allows consumers to bring actions for damages against creditors, sellers, or lessors who violate the law. However, this law does not make the relevant contract void or voidable.

Plain-language laws can also refer to requirements that legislation be written in plain language so that ordinary people can understand the law. Colorado’s Revised Statutes §2-2-801 requires that “all bills and amendments to bills … are written in plain, nontechnical language and in a clear and coherent manner using words with common and everyday meaning which are understandable to the average reader.”

[Last updated in February of 2024 by the Wex Definitions Team]