ASSEMBLY CONSUMER AFFAIRS AND REGULATED PROFESSIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1164

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 20, 1996

      The Assembly Consumer Affairs and Regulated Professions Committee reports favorably Assembly Bill No. 1164 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 advertising merchandise for sale indicating the availability of a manufacturer's rebate by displaying the net price of the item of merchandise, unless the actual selling price of the merchandise is disclosed and a clear and conspicuous notice is provided in the advertisement that a mail-in rebate is required to achieve the lower price. The bill excludes from its provisions any alcoholic beverages sold or offered for sale by any establishment licensed to sell alcoholic beverages pursuant to R.S.33:1-12.

      Prior to being amended by the committee, the bill provided that it would be an unlawful practice for any retail mercantile establishment to advertise merchandise for sale indicating the availability of a manufacturer's rebate by displaying the net price of the item of merchandise, unless the amount of the manufacturer's rebate is provided to the consumer by the retailer at the time of purchase of the advertised item. The original bill also contained the exemption for sale or offering for sale of alcoholic beverages by any establishment licensed to sell alcoholic beverages.

      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.