Maryland prohibits the waiver of punitive damages, or the shortening of time periods to bring suit, in consumer contracts

The Maryland General Assembly recently concluded its 2026 legislative session. One of the bills passed during the session, and signed into law by the Governor, is HB 103. This new law prohibits inclusion in consumer contracts of provisions that would waive, limit, impair, or disclaim statutory damages, punitive damages, declaratory relief, or injunctive relief. Consumer contracts also may not shorten the time available to bring suit under the contract, to a time period shorter than what is provided under Maryland law (typically three years from breach of the contract).

If a consumer contract contains a prohibited provision, a court may not give effect to the prohibited provision, but the court may still enforce the remainder of the contract, to the extent practicable. In other words, inclusion of one of these prohibited provisions does not render the contract void, but the prohibited provision will not be enforced. Inclusion of one of the prohibited provisions also may be considered an “unfair, abusive, or deceptive trade practice” under the Maryland Consumer Protection Act, leading to enforce action brought under that Act.

The new law takes effect October 1, 2026.