Bill

Bill > S4047


NJ S4047

NJ S4047
Prohibits certain digital application distribution platforms from engaging in certain payment-for-service practices.


summary

Introduced
11/08/2021
In Committee
11/08/2021
Crossed Over
Passed
Dead
01/11/2022

Introduced Session

2020-2021 Regular Session

Bill Summary

This bill provides that a provider of a "digital application distribution platform," as defined in the bill, for which cumulative downloads of software applications from the digital application distribution platform to "users," as defined in the bill, exceed one million downloads in the previous or current calendar year is to be prohibited from: 1) requiring a developer of certain software applications (developer) that is domiciled in this State to use a particular "in-application payment system," as that term is defined in the bill, as the exclusive mode of accepting payments from a user to download a software application or to purchase a digital or physical product or service through a software application; 2) requiring exclusive use of a particular in-application payment system as the exclusive mode of accepting payments from users to download a software application or purchase a digital or physical product or service through a software application; and 3) retaliating, in a manner that is deemed detrimental by the Attorney General, against a developer that is domiciled in this State or a user for using an in-application payment system or digital application distribution platform that is not owned by, operated by, or affiliated with the provider or retaliate against a developer for that use to distribute applications to, or accept payments from, users. An agreement that violates the provisions of the bill is unenforceable and is deemed a violation of the State's consumer fraud act. The bill is not to apply with respect to and "special-purpose digital application distribution platform," as defined in the bill. The bill provides that the Attorney General is to receive complaints and investigate violations of the provisions of the bill and may bring an action in any court of competent jurisdiction to obtain legal or equitable relief on behalf of a user aggrieved by the violation.

AI Summary

This bill prohibits certain "digital application distribution platforms" (as defined in the bill) that have over one million downloads in a given year from: (1) requiring developers domiciled in the state to use a particular "in-application payment system" (as defined) as the exclusive mode of accepting payments; (2) requiring the exclusive use of a particular in-application payment system; and (3) retaliating against developers or users for using a payment system or platform not owned, operated, or affiliated with the provider. The bill deems any violating agreements unenforceable and a violation of the state's consumer fraud act. The Attorney General can investigate violations and bring legal action on behalf of aggrieved users. The bill excludes "special-purpose digital application distribution platforms" (as defined).

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 11/08/2021)

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