In 2025, Maryland’s General Assembly made it unlawful to shorten the limitations period in consumer contracts, defined as “contract[s] involving the sale, lease, or provision of goods or services that are for personal, family, or household purposes.” This prohibition applies prospectively to all consumer contracts entered into after June 1, 2026.

The General Assembly went even further earlier this year and enacted House Bill 103 (HB 103), which prohibits businesses from including provisions in consumer contracts that waive, limit, impair or disclaim remedies available under Maryland or federal law. The statute treats such provisions and others that shorten the limitation period as void, illegal and against Maryland public policy.  

HB 103 applies prospectively to all consumer contracts, renewals, and material amendments executed on or after Oct. 1, 2026. Businesses should review all consumer-facing agreements with counsel prior to the effective date.

Key Takeaways

• No Shortened Limitations Periods: Contract clauses requiring consumers to file claims within a compressed timeframe (e.g., one year) are void. Agreements must allow the full limitations period provided under Maryland law, typically three years.
• Ban on Remedy and Damage Waivers: Businesses cannot require consumers to waive statutory damages, punitive damages, declaratory relief or injunctive relief.
• Impact on Arbitration and Class Action Waivers: While federal preemption safeguards valid arbitration frameworks, businesses cannot use arbitration clauses to shorten filing deadlines, bar statutory remedies or impair nonwaivable rights.
• Insurance Exception: Contracts may only cap the recovery of statutory or punitive damages to the specific limit of the business’s applicable insurance coverage.

The new law also directs courts not to enforce the unlawful provisions and to enforce the remainder of the consumer contract “to the extent practicable.”

Miles & Stockbridge’s lawyers are available to help businesses proactively evaluate their contracts, make appropriate revisions, assess insurance coverage and mitigate potential exposure before the October deadline.

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.