Plain Language Consumer Contract Act [PLCCA] Law and Legal Definition

Plain Language Consumer Contract Act promotes the writing of consumer contracts in plain language. This Act will protect consumers from making contracts that they do not understand. It will help consumers to know better their rights and duties under those contracts.

Many consumer contracts are written, arranged and designed in a way that makes them hard for consumers to understand. Competition would be aided if these contracts were easier to understand.

For example, the state statute (Pennsylvania) lays down the guidelines to be followed under this Act:

73 P.S. § 2205 states that in determining whether a contract meets the requirements of subsection a court shall consider the following language guidelines:

1. The contract should use short words, sentences and paragraphs.

2. The contract should use active verbs.

3. The contract should not use technical legal terms, other than commonly understood legal terms, such as "mortgage," "warranty" and "security interest."