Revises individual cause of action under consumer fraud act.
Impact
The bill introduces the concept of 'technical violations,' which refers to violations arising without intent to defraud and not resulting in a significant loss or impact on product quality. Such technical violations would disqualify plaintiffs from receiving attorneys' fees or other costs if the court deems the breach minor or unintentional. This change aims to lessen the strain on businesses which may inadvertently violate the Act, albeit critics argue it could reduce accountability for more serious offenses.
Summary
Assembly Bill A2084 proposes significant changes to the New Jersey Consumer Fraud Act (CFA), directly affecting the legal framework for consumer rights in the state. The primary modification allows courts enhanced discretion in awarding damages under CFA violations, permitting damages no more than three times the actual loss incurred by the victim. This alteration contrasts with the previous mandate of automatic threefold damages awarded for successful claims, which sought to deter fraud through stringent penalties.
Contention
A notable point of contention within discussions surrounding AB A2084 is the requirement for consumers to serve a written demand to the seller seeking resolution before filing suit. Critics argue this could erect barriers for consumers, particularly individuals or low-income plaintiffs without legal assistance, potentially stifling legitimate claims. Proponents, however, assert that this aims to encourage resolution outside the courtroom and decrease frivolous lawsuits, thereby maintaining business integrity while still offering consumer protection.
Updates notice requirements for actions alleging consumer fraud violations and adds indirect purchasers as parties who can receive damages for antitrust violations.
Updates notice requirements for actions alleging consumer fraud violations and adds indirect purchasers as parties who can receive damages for antitrust violations.