Prohibits retail mercantile establishments from imposing surcharges on consumer credit card purchases.
Impact
If enacted, A1080 will amend the New Jersey Consumer Fraud Act by making it an unlawful practice for retailers to add surcharges to credit card transactions. The law will allow enforcement through penalties, including monetary fines up to $10,000 for first offenses and $20,000 for subsequent violations. It also grants authority to the Attorney General to issue cease and desist orders against violators, providing a framework for consumer redress through punitive damages and the awarding of treble damages in cases of unlawful practices.
Summary
Assembly Bill A1080 proposes to prohibit retail mercantile establishments in New Jersey from imposing surcharges on consumers who use credit cards for purchases. The bill aims to protect consumers from additional charges that can deter the use of credit cards, ultimately enhancing consumer confidence and convenience in retail transactions. This legislation is a response to the varying practices of retailers who may impose surcharges, creating inconsistencies and confusing experiences for consumers.
Contention
Notably, the bill includes an exception for retail motor fuel dealers, allowing them to charge different prices for cash and credit purchases. This clause may spark debate among legislators regarding fairness and the implications of allowing price differentiation in specific sectors while prohibiting it broadly across retail. Additionally, opponents of such regulations may argue that restricting surcharges could limit the ability of businesses to recover processing costs associated with credit card transactions, potentially affecting pricing strategies and profit margins.