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  • 168Total

  • NJ A4044
  • Prohibits non-disclosure clauses in certain contracts.
In Committee
Crossed Over
2016-2017 Regular Session
In a contract for the sale, lease or repair of a motor vehicle, this bill prohibits the use of a non-disclosure clause. For the purposes of this bill, a non-disclosure clause is a provision in a contract which imposes a fee or other consequence on a consumer for a negative review or other statement regarding the motor vehicle, the manufacturer, the seller or the lessor. Though non-disclosure agreements are rarely incorporated into contracts for the sale or repair of a motor vehicle, recent press reports indicate that the use of such agreements is on the rise, in some cases leading consumers to believe that they will be in violation of the clause if they report safety issues to the National Highway Traffic Safety Administration. Additionally, such clauses prevent consumers from sharing valuable product information with others, thereby diminishing the accountability of the business imposing the prohibition. This bill prohibits any provision in a consumer contract for the purchase, lease or repair of a motor vehicle which waives a consumer's right to make any statement, or penalizes a consumer for making any statement, including a statement posted on the Internet, regarding the manufacturer, seller or lessor, or its employees or agents, or concerning the goods or services rendered. For violations of this prohibition, the bill grants authority to the Attorney General to impose a civil penalty of up to $5,000 for a first offense, and up to $10,000 for each subsequent offense. It also creates a private cause of action for aggrieved parties. The bill supplements P.L.1981, c.454 (C.56:12-14 et seq.), and as such, would apply to all consumer contracts for the purchase, lease or repair of any motor vehicle. The bill also amends and supplements P.L.1988, c.123 (C.56:12-29 et seq.), commonly known as the "Lemon Law," and would thus also apply the prohibition on non-disclosure clauses to the purchase or lease of a new motor vehicle and any repairs made in relation thereto for a defect or condition which substantially impairs the use, value or safety of that motor vehicle.
Commerce, 2nd Reading in the Assembly, 2nd Reading in the Senate, Community and Urban Affairs, Passed Assembly, Passed both Houses
Passed Senate (Passed Both Houses) (32-5)  (on 1/8/2018)
Date Chamber Action Description
1/8/2018 S Passed Senate (Passed Both Houses) (32-5)
1/8/2018 S Substituted for S3574
12/14/2017 S Reported from Senate Committee, 2nd Reading
12/14/2017 Senate Commerce Hearing (19:00 12/14/2017 S-1903 & A-2523 added.)
12/14/2017 Senate Commerce Hearing (19:00 12/14/2017 A-1903 & A-2523 added.)
12/14/2017 Senate Commerce Hearing (19:00 12/14/2017 S-1051 Removed)
12/14/2017 Senate Commerce Hearing (19:00 12/14/2017 S-1599 & A-760 Added)
12/14/2017 Senate Commerce Hearing (19:00 12/14/2017 )
12/4/2017 S Transferred to Senate Commerce Committee
6/12/2017 S Received in the Senate, Referred to Senate Community and Urban Affairs Committee
6/8/2017 A Passed by the Assembly (68-8-1)
10/6/2016 A Reported out of Assembly Committee, 2nd Reading
10/6/2016 Assembly Consumer Affairs Hearing (10:00 10/6/2016 Committee Room 13, 4th Floor)
7/21/2016 A Introduced, Referred to Assembly Consumer Affairs Committee
Date Motion Yea Nay Other
Detail 1/8/2018 Senate Floor: Third Reading - Final Passage 31 5 3
Detail 1/8/2018 Senate Floor: Substitute For S3574 (Voice Vote) 0 0 0
Detail 12/14/2017 Senate Commerce Committee: Reported Favorably 5 0 1
Detail 6/8/2017 Assembly Floor: Third Reading - Final Passage 68 8 4
Detail 10/6/2016 Assembly Consumer Affairs Committee: Reported Favorably 3 1 0