Senate Commerce Committee Statement — Senate Bill No. 3474 (New Jersey, May 13, 2021)

Summary

Senate Commerce Committee statement dated May 13, 2021, reporting Senate Bill No. 3474 of the State of New Jersey favorably. The bill makes it an unlawful practice under the consumer fraud act to send a nongovernmental solicitation that could reasonably be interpreted as falsely implying a State government connection, approval, or endorsement, unless the sender includes a disclosure letter. The letter gives a breakdown of cost where the solicitation offers to satisfy a State statutory obligation for a fee. A violation 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, and can result in a cease and desist order issued by the Attorney General. As reported, the bill is identical to Assembly Bill No. 4834.

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Full text

     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                  SENATE, No. 3474

 STATE OF NEW JERSEY
                      DATED: MAY 13, 2021

    The Senate Commerce Committee reports favorably Senate Bill
No. 3474.
   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 Assembly Bill No. 4834 as also
reported by the committee.


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