Washington Commercial Law Law News - Washington State Implements Stricter Regulations on Commercial Contracts to Protect Consumers
In an effort to better protect consumers in Washington State, the Department of Commerce has announced new regulations on commercial contracts that are set to go into effect on February 19, 2026. The move comes in response to a rising number of complaints from consumers who have fallen victim to unfair practices by businesses.One of the key changes in the regulations is that all commercial contracts must now include clear and easily understandable terms and conditions. Businesses will be required to disclose all fees, charges, and penalties upfront to ensure that consumers are fully aware of what they are agreeing to before signing a contract. This aim to prevent deceptive practices and ensure that consumers are not caught off guard by hidden costs.Additionally, businesses will be prohibited from including terms in contracts that waive consumers' rights to take legal action in case of disputes. This measure is intended to empower consumers and ensure that they have the ability to seek recourse if they feel they have been wronged by a business.Furthermore, the regulations will also require businesses to provide consumers with a copy of the contract at the time of signing, as well as a 30-day cooling-off period during which consumers can cancel the contract without penalty. This provision aims to give consumers the opportunity to review the terms of the contract and seek legal advice before committing to a binding agreement.The Department of Commerce has stated that these new regulations are necessary to level the playing field between businesses and consumers and to ensure that all parties are treated fairly in commercial transactions. They hope that these measures will help reduce the number of disputes and complaints between consumers and businesses, ultimately leading to a more transparent and trustworthy marketplace in Washington State.Businesses in Washington have been given a grace period of six months to update their contracts and practices to comply with the new regulations. Failure to do so may result in penalties and fines imposed by the Department of Commerce.Overall, the implementation of these stricter regulations on commercial contracts marks a significant step forward in consumer protection in Washington State and sets a precedent for other states to follow suit in ensuring fair and transparent business practices.