Limits forum of consumer contract disputes to New Jersey.
The bill's primary goal is to protect consumers—often less sophisticated in legal matters—from the challenges associated with litigating outside their home state. With a significant number of consumer contracts containing forum-selection clauses, this piece of legislation addresses the growing concern of consumers being forced to arbitrate or litigate in distant, unfamiliar jurisdictions. By ensuring disputes are resolved locally, the bill supports the equitable treatment of consumers and promotes a fairer marketplace.
Assembly Bill A3172, introduced by Assemblyman John F. McKeon, aims to ensure that disputes arising from consumer contracts are resolved within the State of New Jersey. The bill stipulates that any term or condition in a consumer contract requiring the dispute to be handled in a venue outside of New Jersey is only valid if it has received prior legal counsel advice, evidenced by a signature. The legislation seeks to prevent businesses from imposing burdensome conditions on consumers regarding the resolution of disputes, particularly those which would necessitate travel to far-flung jurisdictions.
While supporters laud the bill for safeguarding consumer rights, concerns have been raised about its implications for businesses, particularly in terms of increased litigation costs associated with local resolution requirements. Moreover, the legislation exempts licensed insurance companies and surplus lines insurers from its requirements, potentially creating a separate standard for such contracts which critics argue could lead to disparities in consumer protection based on industry.” This exemption has raised eyebrows, as it may complicate the landscape of consumer disputes in certain sectors.