[First Reprint]
ASSEMBLY, No. 651
STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblymen IMPREVEDUTO and COHEN
An Act concerning the sale of gray market goods and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Gray Market Goods Warranty Disclosure Act."
2. As used in this act:
"Gray market goods" means consumer goods bearing a trademark and normally accompanied by an express written warranty valid in the United States of America which is imported into the United States through channels other than the manufacturer's authorized United States distributor, and which is not accompanied by the manufacturer's express written warranty valid in the United States.
"Retail mercantile establishment" means any place of business where merchandise is exposed or offered for sale at retail to members of the consuming public.
3. a. It shall be an unlawful practice for a retail mercantile establishment to sell or offer to sell gray market goods unless it posts a conspicuous sign at the point of display and affixes to a product or its package a conspicuous ticket, label or tag disclosing any or all of the following, whichever is applicable:
(1) The item is not covered by a manufacturer's express written warranty valid in the United States;
(2) 1[The] When an1 item 1uses electrical current, if the item1 is not compatible with United States electrical currents;
(3) 1[The] When an1 item 1uses broadcast frequencies, if the item1 is not compatible with United States broadcast frequencies;
(4) Replacement parts are not available through the manufacturer's United States distributors;
(5) Compatible accessories are not available through the manufacturer's United States distributors;
(6) 1[The] When it is an industry practice for instructions in English to accompany an item, if the1 item is not accompanied by instructions in English;1and1
(7) 1[The]1 When it is an industry practice for an item to be eligible periodically for a manufacturer's rebate, if the1 item is not eligible for a manufacturer's rebate 1[; and
(8) Any other incompatibility or nonconformity with relevant domestic standards known to the seller]1.
b. The disclosures described in subsection a. of this section shall not be required to be made by a retail mercantile establishment with respect to gray market goods that are accompanied by an express written warranty offered by the retail mercantile establishment, provided that each of the following conditions is satisfied:
(1) The protections and other benefits that are provided to the buyer by the express written warranty provided by the retail mercantile establishment are equal to or better than the protections and other benefits that are provided to buyers in the United States of America by the manufacturer's express written warranty that normally accompanies the goods;
(2) The retail mercantile establishment has posted a conspicuous sign at the product's point of sale or display, or has affixed to the product or its package a conspicuous ticket, label or tag that informs prospective buyers that copies of all warranties applicable to the products offered for sale by the retail mercantile establishment are available to prospective buyers for inspection upon request; and
(3) The retail mercantile establishment has complied with the provisions on presale availability of written warranties as prescribed in 15 U.S.C.§2302(b)(1)(A) and the regulations adopted pursuant to that act, at 16 C.F.R.§702.1 et seq.
4. Every retail mercantile establishment which offers for sale gray market goods shall disclose in any advertisement of those goods the disclosures prescribed in section 2 of this act. The disclosures shall be made in a type of conspicuous size.
5. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety may promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the provisions of this act.
6. This act shall take effect on the first day of the fourth month following enactment.
"Gray Market Goods Warranty Disclosure Act."