Bill > A580

Introduced Session

This bill changes the penalties for a violation of the law prohibiting certain unsolicited checks, enacted as Assembly Bill No. 625 of 2014. Under this law, no person may send an unsolicited check to an individual which, upon being cashed or redeemed, automatically obligates the recipient to pay any fee or enrolls that individual in any club, service, plan, or continuing agreement. A person violating this provision is subject to a civil penalty in an amount not to exceed $500 for a first violation and $1,000 for each subsequent violation. Under this bill, a first violation is subject to a civil penalty of up to $500, and up to $1,000 for a second violation. A third violation is an unlawful practice under the consumer fraud act (CFA), P.L.1960, c.39 (C.56:8-1 et seq.), and would be considered a first offense under the CFA, with a fourth or additional violation considered a subsequent offense under the CFA. An unlawful practice under the CFA is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Additionally, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party. As introduced and passed by both chambers of the Legislature, Assembly Bill No. 625 of 2014 supplemented the CFA and a violation of the provisions of Assembly Bill No. 625 were unlawful practices under the CFA. Subsequently, Assembly Bill No. 625 was conditionally vetoed by the Governor. In the recommendations for reconsideration, the Governor proposed removing the bill's provisions from the CFA, and the penalties set forth thereunder. This bill is a compromise, by creating a two-tiered penalty structure. This bill intends to provide balance by establishing civil penalties for first and second violations and requiring the enhanced penalties of the CFA for repeat violators thereafter.

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Paul Moriarty (D)*, 

Introduced, Referred to Assembly Consumer Affairs Committee (on 01/09/2018)