Assembly Commerce and Economic Development Committee Statement to Assembly, No. 4519, Dated December 5, 2022
Summary
Statement of the Assembly Commerce and Economic Development Committee of the State of New Jersey, dated December 5, 2022, reporting Assembly Bill 4519 favorably with committee amendments. The bill prohibits a motor vehicle dealer or manufacturer from offering a subscription service, or charging a post-purchase fee, for a feature that uses hardware already installed at purchase or lease and would function without ongoing expense. A violation would be an unlawful practice under the consumer fraud act, with a penalty of not more than $10,000 for a first offense and not more than $20,000 for a subsequent offense. The Attorney General may also issue a cease and desist order, and treble damages may be awarded.
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Full text
ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE STATEMENT TO ASSEMBLY, No. 4519 with committee amendments STATE OF NEW JERSEY DATED: DECEMBER 5, 2022 The Assembly Commerce and Economic Development Committee reports favorably Assembly Bill No. 4519, with committee amendments. This bill, as amended, would prohibit a motor vehicle dealer or manufacturer of motor vehicles sold in this State from offering a consumer a subscription service, or charging a consumer a post-purchase fee, for a motor vehicle feature that (1) utilizes components and hardware already installed on the motor vehicle at the time of the vehicle’s purchase or lease; and (2) would function after activation without ongoing expense to the dealer, manufacturer, or third-party service provider. A violation of the bill would be 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 a subsequent offense. In addition, a violation may result in the Attorney General’s issuance of a cease and desist order, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party. COMMITTEE AMENDMENTS: The committee amended the bill to prohibit a motor vehicle dealer or manufacturer of motor vehicles sold in this State from charging certain post-purchase fees.
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