Aside from being from the state in which "Jersey Shore" was filmed, New Jerseyites (or New Jerseyians) were also lucky enough to be protected by one of the most aggressive consumer protection laws in the country, the Consumer Fraud Act, N.J.S.A. §56:8-1 et seq. ("CFA"). The CFA has protected consumers from deception and fraud, even when the merchant acts in good faith. Under the CFA, "the act, use or employment by any person of any unconscionable commercial practice, deception or fraud, false pretense, false promise or misrepresentation, or the knowing concealment, suppression or omission of any material fact with the intent that others rely upon such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise or real estate...is declared to be an unlawful practice . . . ." As well, the CFA provides that "[a]ny person who suffers any ascertainable loss of moneys or property, real or personal, as a result of the use or employment by another person of any method, act or practice declared unlawful under this act . . . may bring an action . . . . In any action under this section the court shall, in addition to any other appropriate legal or equitable relief, award threefold the damages sustained by any person in interest . . . the court shall also award reasonable attorneys' fees, filing fees and reasonable costs of suit." N.J.S.A. §56:8-19 (emphasis added).
However, our happy existence is in danger. The State legislature is seeking to pass bill A-3333. This bill is aimed at limiting the scope of the CFA, which in turn will hurt consumers. First off, the bill limits the class of plaintiffs to individuals, whereas the current CFA allows both individuals and businesses to file suit under this cause of action. Secondly, the bill now makes it a requirement that the individual must have relied on the fraud "to his detriment" to have a cause of action. Under the CFA, this is not a requirement - the plaintiff only had to show that the ascertainable loss was a result of the fraud. The CFA provides a much lower burden for the plaintiff to overcome. Thirdly, the bill now allows the judge discretion in awarding treble (triple) damages, as the proposed bill states that the court "may . . . award up to threefold the actual damages . . . ." The CFA required the court to award treble damages by using the language "shall" instead of "may," as the proposed bill postulates. As well, under the bill, in terms of attorneys fees, the court is still required to award them, but only for those costs" reasonably attributable to the prosecution of the claim brought under [the CFA] that results in the judgment . . . ." The bill further limits the award of attorney's fees and costs to the greater of $150,000 or one-third of the judgment. Finally, the bill adds a new section to the current CFA. This new section makes it so that the CFA will "apply to only to transactions that take place in the State; and not apply to actions or transactions otherwise permitted or regulated by the Federal Trade Commission or any other regulatory body or officer acting under statutory authority of this State or the United States." The CFA, as it stands does make these conditions requirements.
A-3333 benefits only companies which defraud consumers. This will protect car dealerships from consumer fraud lawsuits, allow dishonest businesses to rip off customers and then, if they were caught, simply pay back what they stole and return to their fraudulent "business as usual, " ensure that victims cannot hire a lawyer to protect themselves, as A-3333 limits attorneys' fees that the consumer side (only) may recoup in trying to right the wrong that was done to them, and result in a redistribution of wealth. If A.3333 is enacted, New Jersey's Consumer Fraud Act, currently ranked as the best in the nation, will sink to the worst. This will result in a redistribution of wealth and encourage corrupt businesses to come to New Jersey, protect car dealerships from consumer fraud lawsuits and force honest businesses to change their businesses practices.
The New Jersey Consumer Fraud Act attorneys at Riviere Cresci & Singer LLC, strive to protect consumer rights. If you live in New Jersey, including the towns of Freehold, Red Bank, Toms River, Hightstown, or Monroe, call us and ask us to how we can help you. As well, let your representatives in Trenton that you are opposed to A-3333.
