Senate Commerce Committee Statement to Assembly, No. 4284 (2R) — State of New Jersey (May 15, 2023)

Summary

A Senate Commerce Committee statement to the Second Reprint of Assembly, No. 4284, State of New Jersey, dated May 15, 2023, reporting the bill favorably with committee amendments. The bill prohibits a seller from imposing a credit card surcharge greater than the seller's actual cost to process the payment for a transaction occurring in New Jersey. Sellers that impose a surcharge must disclose it before the customer incurs a charge, by verbal notice and signs, or by electronic notice on the checkout page for online transactions. A violation is an unlawful practice under the consumer fraud act, punishable by a penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense.

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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.

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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