Prohibits provisions in consumer contracts which penalize a consumer for commenting negatively about goods or services rendered.
Impact
Should A2613 be enacted, it will amend existing consumer protection laws, particularly under P.L.1981, c.454, which governs consumer contracts. The bill is designed to strengthen consumer rights in New Jersey by making any clauses that threaten penalty for negative feedback null and void. Importantly, it empowers the New Jersey Attorney General to impose civil penalties on violators, up to $5,000 for the first offense and $10,000 for subsequent offenses, thereby encouraging compliance among businesses.
Summary
Assembly Bill A2613, introduced in New Jersey, aims to protect consumer rights by prohibiting provisions in consumer contracts that penalize individuals for expressing negative opinions about goods or services. It specifically targets non-disparagement clauses, which some businesses have included in their contracts to restrict customers from sharing unfavorable reviews or comments online. This bill seeks to ensure that consumers can freely communicate their experiences without fear of repercussions such as financial penalties or legal actions by sellers or service providers.
Contention
The introduction of A2613 has sparked discussions around the balance between consumer protection and business interests. Proponents believe this legislation is essential for safeguarding consumer voices and promoting transparency in business practices. Conversely, critics may argue that such measures could lead to an increase in unfounded complaints and may inhibit businesses from addressing legitimate grievances effectively. The debate centers on the implications of limiting businesses' abilities to enforce non-disparagement agreements while ensuring consumer rights are upheld.
Permits certain consumers up to five business days to cancel home improvement contracts and up to three days to cancel certain consumer goods contracts.