Senate Commerce Committee Statement to Senate, No. 901 — State of New Jersey (February 10, 2022)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated February 10, 2022, reports favorably and with committee amendments Senate Bill No. 901, which updates the consumer fraud act and the "New Jersey Antitrust Act." The bill expands prohibited commercial practices to include those that are unconscionable or abusive, and in an action brought by the Attorney General any practice violating State or federal law is conclusively presumed unlawful. Notice of private consumer fraud suits must reach the Attorney General within 24 hours of filing rather than 10 days. Indirect purchasers harmed by anticompetitive conduct could sue, and unclaimed damages from class actions may escheat to the State on application by the Attorney General.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
901

with
committee amendments

STATE
OF NEW JERSEY

DATED: FEBRUARY
10, 2022

The Senate Commerce Committee reports favorably and
with committee amendments Senate Bill No. 901.

As
amended, this bill updates various provisions of the
consumer fraud act and the “New Jersey Antitrust Act,” in part to enhance the
enforcement authority of the Division of Consumer Affairs in the Department of
Law and Public Safety.

Under the bill, language in the consumer fraud act on prohibited
commercial practices is expanded to include commercial practices that are
unconscionable or abusive. Additionally, the bill adds language to declare that
in an action brought by the Attorney General, any commercial practice that violates
State or federal law is conclusively presumed to be an unlawful practice under
the consumer fraud act. The bill also adds language regarding the notice of
private lawsuits based on violations of the consumer fraud act. Notice is to be
sent electronically to a dedicated address established by the office of the
Attorney General, and requires certain legal filings to be sent as part of the
notice. The bill stipulates notice is to be sent to the Attorney General within
24 hours of filing rather than 10 days, as is required under current law.

Lastly, the bill amends current State antitrust law by allowing
parties, including municipalities and the State, who are harmed by
anticompetitive conduct to file suit even if the alleged harmed party is an
indirect purchaser who did not deal directly with the defendant. The bill also
stipulates that a defendant is entitled to prove that as a partial or complete
defense to a claim for damages, an illegal overcharge has been passed on to
others, including the defendant, who are entitled to recover, so as to avoid
duplicate recovery damages. The bill adds language to clarify that a person
seeking treble damages may do so if there is an alleged violation of State
antitrust law that demonstrates anticompetitive conduct. Moreover, the bill
adds provisions stating that in the event damages awarded as a result of a
class action or an action instituted by the Attorney General remain unclaimed
or undistributed, the Attorney General may apply to the court and have such
funds escheat to the State upon showing that reasonable efforts were made by
the State to distribute the funds but were unsuccessful.

COMMITTEE AMENDMENTS

The committee amended the bill to clarify that nothing
in the bill is to be construed as restricting the range of unlawful practices
included in section 2 of the consumer fraud act for which private actions may
be brought.

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