Bill
Bill > S4815
NJ S4815
NJ S4815Establishes certain requirements for asserting cause of action under consumer fraud act and limits awarding of attorneys' fees.
summary
Introduced
11/06/2025
11/06/2025
In Committee
11/06/2025
11/06/2025
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 amends the New Jersey Consumer Fraud Act by establishing more stringent requirements for filing consumer fraud lawsuits and limiting attorneys' fees. Specifically, individuals seeking to recover damages must now prove three key elements: (1) they acted as a reasonable consumer would in the circumstances, (2) the alleged unlawful method or practice would cause a reasonable person to act similarly and result in damages, and (3) they suffered actual damages that can be objectively 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 modifies how attorneys' fees are awarded, requiring that such fees bear a reasonable relationship to the monetary judgment, and in cases of equitable relief, be based on the time reasonably expended. The bill's intent is to provide greater protection for businesses by preventing lawsuits where consumers have not suffered genuine harm and to reduce litigation arising from technical violations that do not constitute actual fraud. The changes will apply retroactively to all existing and future actions under the Consumer Fraud Act.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 11/06/2025)
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/S4815 |
| BillText | https://pub.njleg.gov/Bills/2024/S5000/4815_I1.HTM |
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