Bill
Bill > S1227
NJ S1227
NJ S1227Concerns certain actions brought under "Truth-in-Consumer Contract, Warranty and Notice Act."
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill amends the "Truth-in-Consumer Contract, Warranty and Notice Act," (TCCWNA) P.L.1981, c.454 (C.56:12-14 et seq.), by requiring aggrieved consumers to have suffered an ascertainable economic loss in order to commence a class-action lawsuit for violation of the TCCWNA. The bill further provides that a consumer who suffers an economic loss of $250 or less as a result of a violation of the TCCWNA must first request reimbursement for the loss prior to the commencement of a legal action. Pursuant to this bill, a request for reimbursement for an economic loss must be made in writing and sent via certified mail, return receipt requested, and by regular mail. The bill provides that no action shall be filed until the 35th day following the mailing of the request for reimbursement. In addition, an action brought pursuant to the TCCWNA that is first asserted by a consumer as a counterclaim shall satisfy the reimbursement request requirement if the consumer asserts in the pleading the nature of the counterclaim and the economic loss in the amount of $250 or less. A party who has been served with the counterclaim pleading, and who disputes the economic loss stated therein, may choose to tender the full amount of the claimed loss to the court or to the attorney for either party to be held in escrow pending the outcome of the case. Should that party choose to do so, attorney's fees shall not be awarded if the consumer's counterclaim prevails. A consumer whose economic loss exceeds $250 may take legal action under the TCCWNA without first requesting reimbursement.
AI Summary
This bill amends the "Truth-in-Consumer Contract, Warranty and Notice Act" (TCCWNA), a law designed to protect consumers by ensuring clarity in contracts and warranties. Essentially, it introduces new requirements for consumers seeking to sue under this act, particularly in class-action lawsuits. For a class-action lawsuit to proceed, consumers must now demonstrate an "ascertainable economic loss," meaning a quantifiable financial harm they have actually suffered due to a violation of the TCCWNA. Furthermore, if a consumer's economic loss is $250 or less, they must first formally request reimbursement from the party who caused the loss by sending a written request via certified mail and regular mail, and wait 35 days before filing a lawsuit. This reimbursement request requirement is also met if a consumer asserts a counterclaim for $250 or less in a lawsuit, stating the nature of the claim and the amount of loss; in such cases, the opposing party can pay the claimed amount into escrow, and if the consumer wins, they won't receive attorney's fees. However, consumers with economic losses exceeding $250 can still file a lawsuit without first requesting reimbursement.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1227 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1227_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S1500/1227_I1.HTM |
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