Bill > A1532

Introduced Session

This bill changes the penalties for a violation of the law prohibiting certain unsolicited checks, enacted as P.L.2015, c.120 (C.2A:65D-6 et seq.). Under this law, no person may send an unsolicited check to an individual which, upon being cashed or redeemed, automatically obligates the recipient to pay any fee or enrolls that individual in any club, service, plan, or continuing agreement. A person violating this provision is subject to a civil penalty in an amount not to exceed $500 for a first violation and $1,000 for each subsequent violation. Under this bill, a first violation is subject to a civil penalty of up to $500, and up to $1,000 for a second violation. A third violation is an unlawful practice under the consumer fraud act (CFA), P.L.1960, c.39 (C.56:8-1 et seq.), and would be considered a first offense under the CFA, with a fourth or additional violation considered a subsequent offense under the CFA. An unlawful practice under the CFA is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Additionally, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.

Committee Categories

Paul Moriarty (D)*, 

Introduced, Referred to Assembly Consumer Affairs Committee (on 01/11/2022)

Official Document