New Jersey Senate Bill S1375

New Jersey 2022-2023 Regular Session

• Introduced: 2/10/22
• Refer: 2/10/22

Caption

Invalidates consumer contracts which require a waiver of right to file a consumer complaint.

Impact

If enacted, S1375 will amend P.L.1981, c.454, enhancing consumer rights under existing laws such as the Consumer Fraud Act and the Used Car Lemon Law. This means consumers will have stronger legal footing when facing issues related to consumer fraud or defective products, as the bill mandates that any contract language that limits these rights will be deemed null and void. The legislation aims to ensure that consumers are informed of their rights and are not coerced into giving them up through mandatory contracts or arbitration agreements.

Summary

Senate Bill S1375 aims to protect consumers by invalidating any consumer contract that requires individuals to waive their rights to file a complaint. Specifically, the bill targets clauses that might prevent consumers from contacting law enforcement or other agencies regarding consumer complaints. By nullifying such provisions, this legislation seeks to strengthen consumer protection in New Jersey and safeguard the rights of individuals when engaging in contracts, especially in situations where their rights are at risk of being diminished by contractual language.

Contention

Despite the following of the bill being presented as a necessary step for consumer protection, some stakeholders may argue it complicates business practices and limits the ability of companies to enforce arbitration clauses that are intended to resolve disputes efficiently. Critics of S1375 might express concerns that invalidating certain contractual agreements could deter businesses from engaging with consumers, leading them to impose stricter practices that ultimately harm consumer access to products and services. Thus, the dialogue surrounding this bill highlights a crucial tension between consumer protection and business operational flexibility.