Pandemic Darlings The pandemic economy, in original documents
Home Source documents Senate Commerce Committee Statement - Senate Bill No. 4239, New Jersey (December 16, 2021)

Senate Commerce Committee Statement - Senate Bill No. 4239, New Jersey (December 16, 2021)

Summary

Senate Commerce Committee statement to Senate, No. 4239, State of New Jersey, dated December 16, 2021, reporting favorably Senate Bill No. 4239, with committee amendments. As amended, the bill establishes consumer protection requirements for service contract providers, or companies that offer contracts purporting to cover repairs. Providers using a public utility's trade name must disclose that the contract is offered by a third party. The bill requires providers to register with the Division of Consumer Affairs, and requires a cancellation request to be acknowledged within 5 business days of receipt and honored within 10 days of receipt. It states that the bill will take effect on the first day of the ninth month after enactment.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Senate Commerce Committee Statement - Senate Bill No. 4239, New Jersey (December 16, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-12-16-scm-s4239-s1-766d896fa3/, SHA-256 ba91933bc7c504737203071121225e9c0ebba4f8f9ae89cc8da94439136e739d.

Full text

     SENATE COMMERCE COMMITTEE

                     STATEMENT TO

                   SENATE, No. 4239

 STATE OF NEW JERSEY
                   DATED: DECEMBER 16, 2021

   The Senate Commerce Committee reports favorably Senate Bill
No. 4239, with committee amendments.
   As amended, this bill establishes certain consumer protection
requirements upon service contract providers, or companies that
offer contracts purporting to cover repairs to a consumer’s home,
car, or other goods.
   In particular, the bill clarifies that legal requirements pertaining
to service contracts apply to persons who are contractually
obligated to the service contract holder under the terms of the
service contract and an administrator. The bill allows service
contract providers to use the terms “guaranty” or “warranty” in its
name, products, descriptions of products, advertisements or other
materials only if when using that term the provider clearly and
conspicuously discloses that the service contract issued, offered for
sale, or sold is not in the nature of a guaranty or warranty as that
term is legally defined and commonly understood. Additionally, the
bill does not prohibit the use of the term “extended warranty” to
describe a product issued, offered for sale or sold in the State if the
product accurately sets forth the terms and source of the original
equipment manufacturer warranty upon which the product is based
and clearly and conspicuously discloses that the product is a service
contract offered under P.L.2013, c.197 (C.56:12-87 et seq.).
    Moreover, the bill does not requires a provider that complies with
certain other provisions of the bill or an insurer that the Commissioner
of Banking and Insurance has determined meets financial solvency
standards established under Title 17 of the New Jersey Statutes to
comply with provisions in the bill regarding faithful performance.
Persons who administer, issue, make, provide or offer to sell service
contracts are jointly and severally liable in the bill for certain
violations.
   The bill requires providers who use a public utility’s trade name
or identifying information to clearly and prominently disclose:
   (1) that the service contract is not being offered by the public
utility but by a third party entity that is not part of the public utility,
and that an entity other than the public utility will be responsible for
performing the services advertised;
   (2) the name of the provider that offers the service contract;
   (3) the provider’s contact information;
                                 2

   (4) that the communication is an advertisement; and
   (5) if applicable, that the billing for the provider’s services will
be conducted through a public utility and that the public utility is an
entity other than the provider.
   The bill also requires providers to register with the Division of
Consumer Affairs and allows the division to post information about
a provider publicly on its website. The information to be submitted
of the registration does not include an audited financial statement
from the provider.
   Lastly, the bill requires cancellation request to be acknowledged
within 5 business days of receipt and honored within 10 days of
receipt. The bill will take effect on the first day of the ninth month
after enactment.

COMMITTEE AMENDMENTS:
   The committee amended the bill to:
   (1) update the definition of “provider;”
   (2) clarify what a provider of service contracts may use in its
name, products, descriptions of products, advertisements, or any
other materials;
   (3) expand the exceptions in regards to compliance with
provisions regarding the assurance of faithful performance to
contract holders;
   (4) make persons who administer issue, make, provide or offer
to sell service contracts jointly and severally liable for certain
violations;
   (5) modify what information is to be disclosed by a service
contract provider;
   (6) alter what registration as a service contract provider is to
include in a registration;
   (7) require cancellation requests to be acknowledged within 5
business days of receipt and honored within 10 business days of
receipt; and
   (8) makes the bill effective as of the first day of the ninth
month.

File and source

File
2021-12-16_SCM_S4239_S1.pdf
Size
119,049 bytes
SHA-256
ba91933bc7c504737203071121225e9c0ebba4f8f9ae89cc8da94439136e739d
Our copy
2021-12-16_SCM_S4239_S1.pdf
Original
No public link identified.
Back to top