SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 1240

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 10, 1997

      The Senate Commerce Committee reports favorably and with committee amendments Senate Bill No. 1240.

      This bill, as amended by the committee, provides that it is an unlawful practice under the consumer fraud law, P.L.1960, c.39 (C.56:8-1 et seq.), for any person to advertise in writing merchandise for sale offering any guarantee, including a best price guarantee, if the size of the print for any exception to the guarantee is not the size required by regulations adopted by the Division of Consumer Affairs or if any exception is not incorporated in the main body of the advertisement.

      Violators are subject to the penalties set forth in the consumer fraud law. These penalties may include a fine of no more than $7,500 for a first offense and no more than $15,000 for any subsequent offense. In addition, the Attorney General is authorized to seek and obtain in a summary action an injunction prohibiting any violator from continuing to engage in the unlawful practice. In addition, the bill stipulates that any person violating its provisions shall also be liable for a monetary penalty equal to three times the retail price of the item of merchandise advertised, plus reasonable attorneys' fees, filing fees and reasonable costs of suit.