Senate Commerce Committee Statement to Senate, No. 2427 — State of New Jersey (November 3, 2022)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 2427, State of New Jersey, dated November 3, 2022, reporting the bill favorably. The bill requires a manufacturer of a recalled medical device, where the recall requires a consumer to stop using or return the device, to provide a replacement at no cost or, if none is available, to purchase one from another manufacturer for the consumer. The manufacturer must comply as soon as practicable but no later than 30 days after the recall is issued. A violation is an unlawful practice under the consumer fraud act, P.L.1960, c.39, 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

SENATE, No.
2427

STATE
OF NEW JERSEY

DATED: NOVEMBER
3, 2022

The Senate Commerce Committee reports favorably Senate
Bill No. 2427.

This
bill requires a manufacturer of a recalled medical device to provide a
replacement device or pay for a replacement device under certain
circumstances.

Under
the provisions of this bill, if a recall is issued that requires a consumer to
stop using a medical device or to return a medical device to the manufacturer,
the manufacturer is to provide a replacement medical device to a consumer at no
cost, or, if no replacement is available from the manufacturer, to purchase a
replacement medical device available from another manufacturer for the
consumer. The bill provides that a manufacturer is to comply with the
provisions of this section as soon as practicable but no later than 30 days
after the recall is issued.

The
bill defines “manufacturer” to mean a person engaged in the business of
manufacturing or assembling medical devices.

A
violation of the bill’s provisions is an unlawful practice under the consumer
fraud act, P.L.1960, c.39 (C.56:8-1 et seq.). 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.

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