New Jersey Senate Bill S1340

New Jersey 2022-2023 Regular Session

• Introduced: 2/3/22
• Refer: 2/3/22

Caption

Requires cable television, direct broadcast satellite, and television streaming service companies to include certain fees and charges for service in advertised price to consumers.

Impact

The legislation significantly impacts state consumer protection laws, specifically addressing the way service providers present their prices. By enforcing stricter advertising requirements, S1340 seeks to eliminate the practice of advertising low base prices while failing to disclose additional fees that inflate the final cost. This change is expected to lead to a more competitive marketplace where consumers can make informed decisions based on clear and accurate pricing information. Moreover, violations of this bill would be considered unlawful practices under the New Jersey Consumer Fraud Act, subjecting violators to substantial fines and legal repercussions.

Summary

Senate Bill S1340, introduced in the New Jersey Legislature, mandates that cable television companies, direct broadcast satellite providers, and streaming services must include all fees and charges in their advertised prices for consumers. This legislation aims to enhance the transparency of service pricing by ensuring that the total cost of services is clearly communicated to potential customers before they make a purchase decision. By requiring the inclusion of various fees like broadcast programming fees and equipment charges in the advertised price, the bill seeks to prevent misleading advertisements that can confuse consumers regarding the actual cost of television services.

Contention

While supporters of S1340 argue that it will empower consumers and create a fairer marketplace, critics express concern over potential pushback from service providers who may view these regulations as overly burdensome. The debate centers around the balance between protecting consumers and allowing businesses the flexibility to operate effectively. Some stakeholders fear that the added regulations might lead to higher prices as companies adjust their pricing models to comply with the new requirements. The ongoing discussions also highlight the need for precise definitions within the bill regarding the scope of fees that should be included in advertised prices.