Senate Commerce Committee Statement — Senate Bill No. 3508, State of New Jersey (May 15, 2023)

Summary

This Senate Commerce Committee statement, dated May 15, 2023, reports Senate Bill No. 3508 favorably with committee amendments. The bill bars a seller from charging a credit card customer for a transaction in New Jersey a surcharge above the actual cost to the seller of processing the payment, and requires verbal notice and a posted sign at the point of entry and point of sale. The committee amended the bill so electronic notice is provided only on the checkout page. A violation carries a penalty of not more than $10,000 for a first offense and $20,000 for a subsequent offense.

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     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                  SENATE, No. 3508
                   with committee amendments



 STATE OF NEW JERSEY
                      DATED: MAY 15, 2023

    The Senate Commerce Committee reports favorably and with
committee amendments Senate Bill No. 3508.
   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 sales transaction that increases a
charge to a customer for the use of a credit card and “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
Assembly Bill 4284 (2R), 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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