Bill
Bill > A5558
NJ A5558
NJ A5558Establishes certain requirements for asserting cause of action under consumer fraud act and limits awarding of attorneys' fees.
summary
Introduced
04/10/2025
04/10/2025
In Committee
04/10/2025
04/10/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill establishes certain requirements for asserting a personal cause of action under the consumer fraud act (CFA) and limits the awarding of attorneys' fees. Under the bill, a person seeking to recover damages for a violation of the CFA is required to establish that: (1) the person acted as a reasonable consumer would under the circumstances; (2) the method, act, or practice alleged to be unlawful would cause a reasonable person to act in a manner substantially similar to those which resulted in damages; and (3) the person suffered actual damages supported by sufficiently definitive and objective evidence to allow the loss to be calculated with a reasonable degree of certainty. In addition, the bill provides that a court may dismiss a claim as a matter of law if the claim fails to demonstrate a likelihood that the method, act, or practice alleged to be unlawful under the CFA would mislead a reasonable consumer. Under the bill, any attorneys' fees awarded for a violation of the CFA are required to bear a reasonable relationship to the monetary amount of the judgment. The bill provides that when the judgment grants equitable relief, as opposed to monetary damages, attorneys' fees are to be based on the time reasonably expended. The sponsor intends this bill to provide greater protections for businesses and prevent the filing of lawsuits when a consumer has not suffered actual harm. In addition, the sponsor believes that this bill will reduce litigation arising from alleged technical violations of the CFA where a business has not committed fraud.
AI Summary
This bill modifies the New Jersey Consumer Fraud Act (CFA) by establishing more stringent requirements for filing consumer fraud lawsuits and limiting attorneys' fees. Specifically, the bill requires plaintiffs to prove three key elements when seeking damages: (1) they acted as a reasonable consumer would in the circumstances, (2) the alleged unlawful method, act, or practice would cause a reasonable person to act similarly and result in damages, and (3) they suffered actual damages that can be calculated with reasonable certainty. The bill empowers courts to dismiss claims that do not demonstrate a likelihood of misleading a reasonable consumer. Additionally, the legislation introduces new constraints on attorneys' fees, mandating that such fees must bear a reasonable relationship to the monetary judgment, and when equitable relief is granted, fees should be based on reasonable time expended. The goal of the bill is to provide greater protection for businesses by preventing lawsuits where no substantial harm has occurred and to reduce litigation stemming from technical or trivial violations of the Consumer Fraud Act. Importantly, the bill applies retroactively to all existing and future actions filed on or before its enactment date.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced, Referred to Assembly Consumer Affairs Committee (on 04/10/2025)
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/A5558 |
| BillText | https://pub.njleg.gov/Bills/2024/A6000/5558_I1.HTM |
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