SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 3531

STATE OF NEW JERSEY

DATED:  JUNE 17, 2019

      The Senate Commerce Committee reports favorably a Senate Committee Substitute for Senate Bill No. 3531.

      This substitute bill makes it a violation of the consumer fraud act for a pet dealer to lease cats and dogs.

     The bill prohibits a pet dealer from entering into contracts in which the transfer of ownership of a cat or dog is contingent on the making of payments over a period of time subsequent to the transfer of possession of the cat or dog, unless those payments are on an unsecured loan for the purchase of the animal.  

     The bill also prohibits a pet dealer from entering into lease agreements that provide for or offer the option of transferring ownership of a cat or dog at the end of the lease term.

     Under the consumer fraud act, a “pet dealer” means any person engaged in the ordinary course of business in the sale of cats or dogs to the public for profit or any person who sells or offers for sale more than five cats or dogs in one year.

      Violations of the bill’s provisions are punishable by a monetary penalty of up to $10,000 for a first offense and up to $30,000 for any subsequent offense.  In addition, the bill provides that a consumer who enters into this type of contract would be deemed the owner of the cat or dog and would be entitled to a full refund, litigation costs, and attorney’s fees, to be recovered in a civil court proceeding.

      This substitute is identical to the Assembly Committee Substitute for Assembly Bill Nos. 4552 and 4385.