Senate Commerce Committee Statement — Assembly Bill No. 4284, State of New Jersey (May 15, 2023)

Summary

The Senate Commerce Committee statement dated May 15, 2023 reports favorably, with committee amendments, Assembly Bill No. 4284 (2R) of the State of New Jersey. As amended, the bill prohibits a seller from imposing on a customer who uses a credit card for a transaction occurring in New Jersey a surcharge greater than the actual cost to the seller to process the payment. A violation is an unlawful practice under the consumer fraud act, 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. The bill is identical to Senate Bill 3508, as also amended.

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Full text

     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                     [Second Reprint]
               ASSEMBLY, No. 4284
                   with committee amendments



 STATE OF NEW JERSEY
                      DATED: MAY 15, 2023

    The Senate Commerce Committee reports favorably and with
committee amendments Assembly Bill No. 4284 (2R).
    As amended, this bill prohibits a seller from imposing on a
customer who uses a credit card for a transaction occurring in New
Jersey a surcharge greater than the actual cost to the seller to
process the credit card payment.
    Under the bill, a seller that imposes a surcharge on a customer to
process a credit card payment is to disclose the existence of the
surcharge to the customer before the customer incurs any charge for
goods or services by providing verbal notice to the customer and by
posting clear and conspicuous notice on a sign at the point of entry
and point of sale, and for any restaurant, on a sign in the customer
service area and on the menu. However, if the seller is processing a
credit card payment for a transaction that will occur through an
Internet website or mobile application, the seller is to provide clear
and conspicuous electronic notice on the checkout page of the
Internet website or mobile application prior to processing the
transaction. Or, if the seller is processing a credit card payment for
a transaction that will occur over the telephone, the seller is to
provide verbal notice before processing the transaction.
    The bill defines “surcharge” to mean any additional amount
imposed by a seller at the time of a credit card transaction that
increases a charge to a customer for the use of a credit card. In
addition, the bill defines “goods” to exclude motor fuel.
    A violation of the bill’s provisions is an unlawful practice under
the consumer fraud act. 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. In addition, a violation
can result in cease and desist orders issued by the Attorney General,
the assessment of punitive damages, and the awarding of treble
damages and costs to the injured party.
    As amended and reported by the committee, this bill is identical to
Senate Bill 3508, as also amended and reported by the committee.
                                2

COMMITTEE AMENDMENTS:
    The committee amended the bill to stipulate that, if the seller is
processing a credit card payment for a transaction that will occur
through an Internet website or mobile application, the seller is to
provide clear and conspicuous electronic notice on only the checkout
page of the Internet website or mobile application prior to processing
the transaction and not on the website homepage and the checkout
page.


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