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Bill > A2796


NJ A2796

NJ A2796
Revises individual cause of action under consumer fraud act.


summary

Introduced
02/08/2016
In Committee
02/08/2016
Crossed Over
Passed
Dead
01/08/2018

Introduced Session

2016-2017 Regular Session

Bill Summary

This bill makes various revisions to the New Jersey consumer fraud act. Under current law, when a violation of the consumer fraud act is found to have occurred, the court is required to award threefold the damages sustained by any person in interest and attorneys' fees. This bill gives the court discretion in awarding damages, which would not be permitted to exceed threefold the actual damages sustained by the consumer. The bill provides that purely technical violations of the act do not allow for an award of attorneys' fees, filing fees and costs. The bill also provides that the plaintiff, in order to succeed in a consumer fraud action, must have been aware of, and relied to his detriment on, the use or employment of the unlawful method, act or practice. The bill also requires that a consumer serve a written demand on the seller for the seller to make the consumer whole, before filing suit. In addition, the bill provides that the consumer fraud act applies only to New Jersey residents or transactions that take place within the State. The bill also provides that the consumer fraud act would not apply to actions or transactions otherwise permitted or regulated by the Federal Trade Commission or any other regulatory body or officer acting under statutory authority of this State or the United States.

AI Summary

This bill makes several revisions to the New Jersey consumer fraud act. It gives the court discretion in awarding damages, which would not be permitted to exceed threefold the actual damages sustained by the consumer. The bill also provides that the plaintiff must have been aware of and relied on the unlawful practice to their detriment in order to succeed in a consumer fraud action. Additionally, the bill requires the consumer to serve a written demand on the seller to make them whole before filing suit, and it limits the availability of attorneys' fees, filing fees, and costs for "technical violations" that do not impact the quality of the product or service or result in an ascertainable loss. The bill also limits the application of the consumer fraud act to New Jersey residents or transactions within the state, and excludes actions or transactions regulated by the Federal Trade Commission or other regulatory bodies.

Committee Categories

Business and Industry

Sponsors (3)

Last Action

Introduced, Referred to Assembly Consumer Affairs Committee (on 02/08/2016)

bill text


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