ASSEMBLY, No. 1247

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen AZZOLINA and IMPREVEDUTO

An Act concerning certain false advertising, amending P.L.1971, c.247 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. Section 7 of P.L.1971, c.247 (C.56:8-19) is amended to read as follows:

    7. a. Any person who suffers any ascertainable loss of moneys or property, real or personal, as a result of the use or employment by another person of any method, act, or practice declared unlawful under this act or [the act hereby amended and supplemented] P.L.1960, c.39 (C.56:8-1 et seq.) may bring an action or assert a counterclaim therefor in any court of competent jurisdiction. In any action under this section the court shall, in addition to any other appropriate legal or equitable relief, award threefold the damages sustained by any person in interest. In all actions under this section the court shall also award reasonable attorneys' fees, filing fees and reasonable costs of suit.

    b. For the purposes of this section, "person" shall include a competitor within the trade area of a merchant alleged to have violated section 2 of P.L.1960, c.39 (C.56:8-2) with respect to advertising, except that damages awarded to such a competitor shall be limited to actual damages and attorneys' fees and costs of suit may be awarded to the prevailing party.

(cf: P.L.1971, c.247, s.7)

    2. (New section) In addition to service upon the Attorney General as required pursuant to section 8 of P.L.1971, c.247 (C.56:8-20), any person who brings an action pursuant to subsection b. of section 7 of P.L.1971, c.247 (C.56:8-19) shall file a copy of any order or settlement agreement entered in the matter with the Director of the Division of Consumer Affairs. Eighteen months following the effective date of this 1996 amendatory and supplementary act, the director shall provide a report to the Legislature on the implementation and effect of this act.

    3. This act shall take effect immediately.

STATEMENT

    This bill provides a cause of action to a business competitor within the trade area of a merchant alleged to have violated section 2 of P.L.1960, c.39 (C.56:8-2) with respect to advertising. The cause of action provided by the bill to such a business competitor is the same as the cause of action provided by the consumer fraud law to consumers, except that damages awarded to a business competitor shall be limited to actual damages and attorneys' fees, and costs of suit may be awarded to the prevailing party in the action.

    Any business competitor who brings a cause of action pursuant to the bill's provisions is required to file a copy of any order or settlement entered in the action with the Director of the Division of Consumer Affairs. The bill requires the Director of the Division of Consumer Affairs, eighteen months after the bill's effective date, to report to the Legislature on the implementation and effect of the bill.

Provides a cause of action to business competitors to prevent certain false advertising.