Monmouth County Enforcement of NJ Consumer Fraud Act
The Monmouth County Division of Consumer Affairs recently announced that it recovered more than $1.8 million on behalf of consumers in 2015. The announcement highlights that violating the New Jersey Consumer Fraud Act can be costly for Monmouth County businesses.
Provisions of the Consumer Fraud Act
The New Jersey Consumer Fraud Act prohibits a range of fraudulent business practices in connection with the sale of goods, services or real estate. There are three possible bases for liability under the statute:
Affirmative Misrepresentation: The statute expressly prohibits certain affirmative acts, including “any unconscionable commercial practice, deception, fraud, false pretense, false promise or misrepresentation.” A “misrepresentation” is defined as an untrue statement made about a fact which is important or significant to the sale/advertisement.
Knowing Omission: The statute also imposes liability for acts of omission, specifically the “knowing concealment, suppression or omission of any material fact.” In order to be unlawful, the consumer must establish that defendant acted knowingly or with intent.
Specific-situation Statute/Administrative Regulations: There are a number of New Jersey statutes and regulations that set forth specific conduct prohibited by law. Many are industry specific, such as health club memberships, sale of children’s products, and home improvement services, while others apply to certain business practices, such as sending unsolicited faxes.
Once the plaintiff establishes a statutory violation, he or she must also demonstrate that the act of consumer fraud caused a measurable loss, i.e. loss of money or property.
Violations of the Consumer Fraud Act
The New Jersey Division of Consumer Affairs is tasked with enforcing the Consumer Fraud Act. However, it also delegates some of its oversight authority to county offices. The Monmouth County Division of Consumer Affairs regularly conducts inspections to verify that local businesses are in compliance with the Consumer Fraud Act and state regulations. It is also authorized to investigate and mediate individual complaints.
Violations of the Consumer Fraud Act can be extremely costly for Monmouth County businesses. Under the statute, businesses found to have committed consumer fraud must pay treble damages. That means if the consumer suffered $10,000 in damages, the actual amount the business must pay is $30,000. When a consumer brings a successful action under the Consumer Fraud Act, the defendant must also pay the plaintiff’s attorney’s fees, which can also be a sizable amount. Finally, because the Division of Consumer Affairs makes complaint histories of local businesses available to the public, companies can also lose future customers.
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
