Senate Commerce Committee Statement — Assembly Bill No. 4834 (New Jersey, May 13, 2021)

Summary

Senate Commerce Committee statement dated May 13, 2021, reporting Assembly Bill No. 4834 of the State of New Jersey favorably. The bill requires a disclosure letter with any mailing that falsely implies a State government connection, approval, or endorsement, and makes sending such a solicitation without it an unlawful practice under the consumer fraud act. The letter must include the sender's full name and language in no less than 14 point, bold typeface stating the product or service has not been approved or endorsed by the State of New Jersey. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. As reported, the bill is identical to Senate Bill No. 3474.

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Full text

     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

               ASSEMBLY, No. 4834

 STATE OF NEW JERSEY
                      DATED: MAY 13, 2021

    The Senate Commerce Committee reports favorably Assembly
Bill No. 4834.
    This bill requires the inclusion of a disclosure letter with any
mailing that falsely implies a State government connection,
approval, or endorsement.
   Under the provisions of this bill, it would be an unlawful practice
under the consumer fraud act for any person to send a mailing
which constitutes a solicitation by a nongovernmental entity for the
purchase of or payment for a product or service which could
reasonably be interpreted as falsely implying any State government
connection, approval, or endorsement through the use of a seal;
insignia; citation to a State statute; name of a State agency,
department, commission, or program; trade or brand name; or any
other term or symbol unless the person includes a disclosure letter.
   The bill provides that the disclosure letter is to contain the
following:
     the full name of the person sending the solicitation;
     if the solicitation constitutes an offer to satisfy a State
        statutory obligation in exchange for a fee, a breakdown of
        the cost of the service to include the total amount of money
        to be paid to the State to satisfy the statutory obligation and
        the fee charged for the service; and
     language printed in no less than 14 point, bold typeface
        stating: “This product or service has not been approved or
        endorsed by the State of New Jersey, and this offer is not
        being made by a State agency, department, commission, or
        program.”
   The bill defines “person” to mean an individual, corporation,
business trust, estate, trust, partnership, limited liability company,
association, joint venture, public corporation, or any other legal or
commercial entity.
   An unlawful practice under the consumer fraud act, P.L.1960,
c.39 (C.56:8-1 et seq.), is punishable by a monetary penalty of not
more than $10,000 for a first offense and not more than $20,000 for
any subsequent offense. In addition, a violation can result in a
cease and desist order issued by the Attorney General, the
assessment of punitive damages, and the awarding of treble
damages and costs to the injured.
                                2

   As reported, this bill is identical to Senate Bill No. 3474 as also
reported by the committee.


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