Before, New York law was said to govern the Terms themselves. Now it is written to cover "any dispute of any sort" between you and Scribd. If you live in a state with stronger consumer protection laws, Scribd will argue New York law applies to your claim instead of your home state's law. Many state consumer protection laws still apply no matter what a contract says, but this wording gives Scribd a stronger argument.
“You agree that these Terms and any dispute of any sort between You and the Company are and will be governed by the laws of the State of New York, without regard to conflict of laws principles”
What you can do — If you have a dispute with Scribd, ask a lawyer or your state attorney general's office whether your home state's consumer protection law still covers you — this clause does not automatically cancel those rights.