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A4086
ASSEMBLY, No. 4086
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 19, 2026
Sponsored by:
Assemblywoman� ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
���� �Free Means Free Act�; prohibits misleading
advertising of free products.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning misleading advertising 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.���
This act shall be known and may
be cited as the �Free Means Free Act.�
����� 2.�� As
used in this act:
����� �Contracted
service� means a membership, subscription, or technology service offered for
sale or sold and agreed to in a contract between a provider and a person.
����� �Product�
means any device, equipment, item, or other similar object offered for sale or
sold in this State in conjunction with a contracted service.
����� �Provider�
means a person that sells or offers to sell a contracted service. The term
excludes Internet service providers as defined in section 3 of P.L.2007, c.272
(C.56:8-170).
����� �Ultimate
cost� means the final cost of a product sold or offered for sale, or provided
in conjunction with a contracted service, as a sum of all yearly, monthly, or
otherwise divided or totaled payments, and including any shipping, activation,
cancellation, return, or restocking fees associated with the product, and
contracted service if applicable.
����� 3.�� a.�� It
shall be an unlawful practice and a violation of
P.L.1960, c.39
(C.56:8-1 et seq.) for a
provider to sell or
offer for sale any product if the provider fails to clearly and conspicuously
disclose the ultimate cost of the product, including the ultimate cost after
the assessment of any fees in the event that the person cancels or terminates a
contracted service with a provider or returns the product to the provider.
����� b.�� A
provider shall clearly and conspicuously indicate, at the point of sale or
contract agreement, the ultimate cost of any product offered for sale or sold
by the provider, including:
����� (1)� whether
the cost of the product was offered by the provider as free or at a reduced
rate, as part of the sale or contract;
����� (2)� the
retail value of the product and any associated subsidy offered by the provider;
����� (3)� any
cancellation fee to be assessed by the provider if the person cancels or
terminates the contract, including, if applicable,� any formula used to
determine the total cancellation fee; and
���� (4)�� any
return or restocking fee to be assessed by the provider if the person returns
the product.
����� 4.�� It
shall be an unlawful practice and a violation of
P.L.1960, c.39
(C.56:8-1 et seq.)
for a provider to advertise
any product as free, or offer for sale or sell any product at no cost, if the provider:
(1) assesses a return or restocking fee for the return of the product or
another product sold in conjunction with the free product; (2) assesses a
cancellation fee for early termination of a contracted service and the
cancellation fee incorporates any actual value or cost of the product; or (3)
includes any amount to cover the cost of the product within a bill regularly
assessed to a person for the contracted service.
���� 5.��� This act shall take
effect on the first day of the third month next following the date of
enactment.
STATEMENT
����� This bill, to be known as the �Free Means Free Act,�
would prevent misleading advertising practices of contracted service providers
by prohibiting the advertising of any product as free, or offering for sale or
selling any product at no cost, if it is not ultimately free.
����� Specifically, the bill provides that it would be an
unlawful practice for a provider to advertise, offer, or sell free products if
the provider: (1) assesses a return or restocking fee for the return of the
product or another product sold in conjunction with the free product; (2)
assesses a cancellation fee for early termination of a contracted service and
the cancellation fee incorporates any actual value or cost of the product; or
(3) includes any amount to cover the cost of the product within a bill regularly
assessed to a person for the contracted service.
����� The bill also requires a provider to clearly and
conspicuously disclose the ultimate cost of any product, including the ultimate
cost after any fees (e.g. cancellation or restocking fees) are assessed.� Under
the bill, the �ultimate cost� is defined as the final cost of a product sold or
offered for sale, or provided in conjunction with a contracted service, as a
sum of all yearly, monthly, or otherwise divided or totaled payments, and
including any shipping, activation, cancellation, return, or restocking fees
associated with the product, and contracted service if applicable.� Under the
bill, �provider� excludes Internet service providers as defined in section 3 of
P.L.2007, c.272 (C.56:8-170).
����� The bill further requires, a provider to clearly and
conspicuously indicate the ultimate cost of the product at the point of sale or
contract agreement, including:
����� (1)� whether the cost of the product was offered by
the provider as free or at a reduced rate, as part of the sale or contract;
����� (2)� the retail value of the product and any
associated subsidy offered by the provider;
����� (3)� any cancellation fee to be assessed by the
provider if the person cancels or terminates the contract, including, if
applicable,� any formula used to determine the total cancellation fee; and
����� (4)� any return or restocking fee to be assessed by
the provider if the person returns the product.
����� 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
can 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.