Senate Commerce Committee Statement to Senate, No. 3474 — State of New Jersey (May 13, 2021)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 3474, State of New Jersey, dated May 13, 2021, reporting the bill favorably. The bill makes it an unlawful practice under the consumer fraud act to send a nongovernmental solicitation that could reasonably be read as falsely implying a State government connection, approval or endorsement, through a seal, insignia, statute citation or agency name, unless a disclosure letter is included. The letter must give the sender's full name, a cost breakdown for offers to meet a State statutory obligation for a fee, and a statement in no less than 14 point bold type that the State of New Jersey has not approved the product. Penalties are not more than $10,000 for a first offense and not more than $20,000 for subsequent offenses.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
3474

STATE
OF NEW JERSEY

DATED: MAY 13,
2021

The Senate Commerce Committee reports favorably Senate
Bill No. 3474.

This
bill requires the inclusion of a disclosure letter with any mailing that
falsely implies a State government connection, approval, or endorsement.

Under
the provisions of this bill, it would be an unlawful practice under the
consumer fraud act for any person to send a mailing which constitutes a
solicitation by a nongovernmental entity for the purchase of or payment for a
product or service which could reasonably be interpreted as falsely implying
any State government connection, approval, or endorsement through the use of a
seal; insignia; citation to a State statute; name of a State agency,
department, commission, or program; trade or brand name; or any other term or
symbol unless the person includes a disclosure letter.

The
bill provides that the disclosure letter is to contain the following:

· the full name
of the person sending the solicitation;

· if the
solicitation constitutes an offer to satisfy a State statutory obligation in
exchange for a fee, a breakdown of the cost of the service to include the total
amount of money to be paid to the State to satisfy the statutory obligation and
the fee charged for the service; and

· language
printed in no less than 14 point, bold typeface stating: “This product or
service has not been approved or endorsed by the State of New Jersey, and this
offer is not being made by a State agency, department, commission, or program.”

The
bill defines “person” to mean an individual, corporation, business trust,
estate, trust, partnership, limited liability company, association, joint
venture, public corporation, or any other legal or commercial entity.

An
unlawful practice under the consumer fraud act, P.L.1960, c.39 (C.56:8-1
et seq.), 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 a cease and desist order issued by the
Attorney General, the assessment of punitive damages, and the awarding of
treble damages and costs to the injured.

As reported, this bill is identical to Assembly Bill
No. 4834 as also reported by the committee.

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