ASSEMBLY CONSUMER AFFAIRS AND REGULATED PROFESSIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 651

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 5, 1996

      The Consumer Affairs and Regulated Professions Committee reports favorably Assembly Bill No. 651 with committee amendments.

      As amended, this bill supplements the consumer fraud law, P.L.1960, c.39 (C.56:8-1 et seq.), to prohibit, as an unlawful practice, any retail mercantile establishment from selling or offering 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 deficiencies in the product. The bill also requires that similar disclosures be made by retail mercantile establishments when they advertise gray market goods. As defined in this bill, "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.

      The committee adopted various amendments specifying particular conditions under which a retail mercantile establishment shall identify an item as a gray market good.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.