Requires use of merchant category codes for purchases of firearms and ammunition.
The legislation grants the Office of the Attorney General exclusive authority to enforce compliance with this bill. Businesses that violate these directives could face significant penalties, including civil penalties of $10,000 per violation and potential injunctive relief. Moreover, the Attorney General must notify a violator before bringing forth an action, allowing them 30 days to correct the identified issues, which adds a layer of due process and opportunity for compliance before penalties are enforced. This bill seeks to support accountability in transactions relating to firearms by establishing an official mechanism for monitoring these sales.
Senate Bill S3706, introduced in the New Jersey Legislature, mandates that payment card networks make available a specific merchant category code for businesses engaged in selling firearms and ammunition. This merchant category code, which was established by the International Organization for Standardization on September 9, 2022, is expected to be implemented by July 1, 2026. This law is aimed at standardizing the categorization of transactions related to firearms and ammunition sales to ensure accurate tracking and enforcement in the state.
The core of S3706's contention lies in the implications for privacy and business operations as it seeks to classify and track firearms-related purchases differently from other retail transactions. Advocates argue that this bill could enhance safety and accountability concerning firearms sales, while opponents may view it as an intrusion on privacy or an additional regulatory layer that could complicate transactions for law-abiding citizens. The conversations surrounding this bill reflect a broader national debate on firearm regulations and the role of financial institutions in monitoring gun sales.