Sponsored by:
Senator ANTHONY R. BUCCO
District 25 (Morris and Somerset)
SYNOPSIS
Clarifies small business consultants are subject to consumer fraud act.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning small business consultants and amending P.L.1960, c.39.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1960, c.39 (C.56:8-1) is amended to read as follows:
1. As used in P.L.1960, c.39 (C.56:8-1 et seq.):
(a) The term "advertisement" shall include the attempt directly or indirectly by publication, dissemination, solicitation, indorsement or circulation or in any other way to induce directly or indirectly any person to enter or not enter into any obligation or acquire any title or interest in any merchandise or to increase the consumption thereof or to make any loan [;] .
(b) The term "Attorney General" shall mean the Attorney General of the State of New Jersey or any person acting on his behalf [;] .
(c) The term "merchandise" shall include any objects, wares, goods, commodities, services or anything offered, directly or indirectly to the public for sale [;] .
(d) The term "person" as used in this act shall include any natural person or his legal representative, partnership, corporation, company, trust, firm, agency, business entity or association, and any agent, employee, salesman, consultant, partner, officer, director, member, stockholder, associate, trustee or cestuis que trustent thereof [;] .
(e) The term "sale" shall include any sale, rental or distribution, offer for sale, rental or distribution or attempt directly or indirectly to sell, rent or distribute [;] .
(f) The term "senior citizen" means a natural person 60 years of age or older
(cf: P.L.1999, c.298, s.2)
2. This act shall take effect immediately.
STATEMENT
This bill clarifies that consultants, such as small business consultants and consulting firms or agencies, are subject to the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.).
Under the consumer fraud act, it is an unlawful practice for a person to act, use, or employ unconscionable commercial practices, deception, fraud, false promises, and misrepresentation. This bill clarifies that “consultants” are included in the definition of “person” and, thus, are subject to the consumer fraud act.
An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Additionally, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.