Bill > S1177

Introduced Session

This bill requires the Director of the Division of Consumer Affairs, in the Department of Law and Public Safety, to establish and undertake a public information campaign to educate and inform consumers concerning real estate rental housing scams, including how to recognize and report them. The public information campaign would include, but not be limited to, the preparation, publication, and distribution of information through the division's website, booklets, pamphlets, or other pertinent materials. The information would be made available in English and Spanish. The bill also requires the director to provide a toll-free telephone number for consumers to obtain additional information or make an inquiry regarding a prospective rental, landlord, or real estate agent or agency. Rental scams occur when property owners or potential tenants misrepresent themselves or the terms and availability of a rental property. Some scammers "hijack" an actual rental or real estate listing by changing the email address or other contact information, and placing the modified advertisement on another site. The altered advertisement may even use the name of the person who posted the original advertisement. In other cases, scammers have hijacked the email accounts of property owners on reputable vacation rental websites. Some scammers create listings for housing that is not for rent or does not exist, and try to lure potential renters with the promise of low rent or great amenities. The goal of these scammers is to get a person's money before he or she discovers the property is a "phantom" rental. The Federal Trade Commission (FTC) works to prevent fraudulent, deceptive, and unfair business practices and to provide consumers with information to help recognize and avoid them. The FTC has developed information for consumers to learn the signs of rental listing scams, and how to report these scams. For instance, the FTC indicates that scammers may:· ask a potential renter to wire money as a deposit or payment of first and last month's rent because wiring money is like giving cash - a refund cannot be made, even if the offer was a fraud;· require a potential renter to sign the lease before seeing the rental property, and prohibit potential renters from entering the home or apartment or charge a fee to view it; and· claim to be an agent for the property owner who is too busy, out of the country, or otherwise unavailable to handle the rental.

Committee Categories

Raj Mukherji (D)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)

Official Document