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.
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
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!
