Senate Commerce Committee Statement to Senate, No. 901 (February 10, 2022)

Summary

Senate Commerce Committee Statement to Senate, No. 901, with committee amendments, State of New Jersey, dated February 10, 2022, reporting Senate Bill No. 901 favorably and with committee amendments. The statement says the bill, as amended, updates provisions of the consumer fraud act and the "New Jersey Antitrust Act" in part to enhance the enforcement authority of the Division of Consumer Affairs. It expands prohibited commercial practices to include practices that are unconscionable or abusive, and requires notice of private lawsuits to reach the Attorney General within 24 hours of filing rather than 10 days. It also lets parties harmed by anticompetitive conduct sue even if they were indirect purchasers.

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     SENATE COMMERCE COMMITTEE

                     STATEMENT TO

                    SENATE, No. 901
                    with committee amendments



 STATE OF NEW JERSEY
                   DATED: FEBRUARY 10, 2022

     The Senate Commerce Committee reports favorably and with
committee amendments Senate Bill No. 901.
    As amended, this bill updates various provisions of the consumer
fraud act and the “New Jersey Antitrust Act,” in part to enhance the
enforcement authority of the Division of Consumer Affairs in the
Department of Law and Public Safety.
    Under the bill, language in the consumer fraud act on prohibited
commercial practices is expanded to include commercial practices
that are unconscionable or abusive. Additionally, the bill adds
language to declare that in an action brought by the Attorney
General, any commercial practice that violates State or federal law
is conclusively presumed to be an unlawful practice under the
consumer fraud act. The bill also adds language regarding the notice
of private lawsuits based on violations of the consumer fraud act.
Notice is to be sent electronically to a dedicated address established
by the office of the Attorney General, and requires certain legal
filings to be sent as part of the notice. The bill stipulates notice is to
be sent to the Attorney General within 24 hours of filing rather than
10 days, as is required under current law.
    Lastly, the bill amends current State antitrust law by allowing
parties, including municipalities and the State, who are harmed by
anticompetitive conduct to file suit even if the alleged harmed party
is an indirect purchaser who did not deal directly with the
defendant. The bill also stipulates that a defendant is entitled to
prove that as a partial or complete defense to a claim for damages,
an illegal overcharge has been passed on to others, including the
defendant, who are entitled to recover, so as to avoid duplicate
recovery damages. The bill adds language to clarify that a person
seeking treble damages may do so if there is an alleged violation of
State antitrust law that demonstrates anticompetitive conduct.
Moreover, the bill adds provisions stating that in the event damages
awarded as a result of a class action or an action instituted by the
Attorney General remain unclaimed or undistributed, the Attorney
General may apply to the court and have such funds escheat to the
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State upon showing that reasonable efforts were made by the State
to distribute the funds but were unsuccessful.

COMMITTEE AMENDMENTS
    The committee amended the bill to clarify that nothing in the bill is
to be construed as restricting the range of unlawful practices included
in section 2 of the consumer fraud act for which private actions may be
brought.


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