New Jersey-2024-A2659-Introduced

An Act concerning actions for consumer fraud, amending P.L.1971, c.247 and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 7 of P.L.1971, c.247 (C.56:8-19) is amended to read as follows:

7. a. Any person who suffers any ascertainable loss of moneys or property, real or personal, [as a result of] because he was aware of and relied to his detriment on the use or employment by another person of any method, act, or practice declared unlawful under [this act or the act hereby amended and supplemented] P.L.1960, c.39 (C.56:8-1 et seq.) may bring an action or assert a counterclaim therefor in any court of competent jurisdiction. In any action under this section the court [shall] may, in addition to any other appropriate legal or equitable relief, award up to threefold the actual damages sustained by any person in interest. In all actions under this section, including those brought by the Attorney General, the court shall also award reasonable attorneys' fees, filing fees and reasonable costs of suit.

b. Prior to bringing a suit alleging a violation of P.L.1960, c.39 (C.56:8-1 et seq.), a person shall first serve a written demand on the seller demanding that the seller make the person whole. Failure to place the seller on notice of the claim will result in a loss of any right to secure threefold damages for any such violation.

c. (1) Notwithstanding the provisions of subsection a. of this section, attorneys' fees, filing fees, and reasonable costs of suit shall not be awarded for a technical violation of P.L.1960, c.39 (C.56:8-1 et seq.).

(2) For the purposes of this section, "technical violation" means any violation in which the person held in violation acted in good faith and with no intent to defraud, and the resulting violation did not:

(a) impact the quality of the product or service provided; or

(b) result in an ascertainable loss to the person.

"Technical violation" shall not be construed to include a second or subsequent violation of the same or any similar provision of P.L.1960, c.39 (C.56:8-1 et seq.) if the person has been notified of the original violation and has had reasonable time and opportunity to rectify any subsequent violations of the same or similar nature.

(3) Nothing contained in this section shall be construed to in any way prevent attorneys' fees, filing fees, and reasonable costs of suit from being awarded in any action under this section brought by the Attorney General, including for any violation determined to be a technical violation.

(cf: P.L. 1997, c.359, s.1)

2. (New section) The provisions of P.L.1960, c.39 (C.56:8-1 et seq.) shall:

a. apply only to New Jersey residents, or to transactions that take place in the State; and

b. 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.

3. This act shall take effect immediately and shall apply to actions filed on or after the effective date.

STATEMENT

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.