Makes advertised discount by use of fictitious former price of merchandise or services unlawful practice under consumer fraud act.

S4110

SENATE, No. 4110

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 4, 2026

Sponsored by:

Senator� RAJ MUKHERJI

District 32 (Hudson)

SYNOPSIS

���� Makes advertised discount by use of fictitious former
price of merchandise or services unlawful practice under consumer fraud act.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the fictitious discounting of merchandise
and services 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.��� a. �It shall be an
unlawful practice under P.L.1960, c.39 (C.56:8-1 et seq.) for any person to use
a fictitious former price in the sale of merchandise or services.� A former
price or price range or the amount of reduction shall be deemed fictitious if
it cannot be substantiated, based upon a determination by the Director of the
Division of Consumer Affairs in the Department of Law and Public Safety:

���� (1) �of a substantial number
of sales of the advertised merchandise, or comparable merchandise of like grade
or quality made within the person's trade area in the regular course of
business at any time within the most recent 60 days during which the advertised
merchandise was available for sale prior to, or which were in fact made in the
first 60 days during which the advertised merchandise was available for sale
following the effective date of the advertisement;

���� (2) �that the advertised
merchandise, or comparable merchandise of like grade or quality, was actively
and openly offered for sale at that price within the advertiser's trade area in
the regular course of business during at least 28 days of the most recent 90
days before or after the effective date of the advertisement; or

���� (3) �that the price does not
exceed the supplier's cost plus the usual and customary mark-up used by the
advertising merchant in the actual sale of the advertised merchandise or
comparable merchandise of like grade or quality in the recent regular course of
business.

���� b.��� If the former price
specifically references a time in the remote past during which it was offered,
it shall be deemed fictitious unless substantiated pursuant to either paragraph
(1) or (3) of subsection b. of this section.

���� c.���� (1)� In addition to any
other remedy available under the law, any person aggrieved by a violation of
this section may bring a civil action in the Superior Court against a person
using a fictitious former price in the sale of merchandise or services.

���� (2)�� The court shall award reasonable
attorney's fees and other litigation costs reasonably incurred, and the greater
of:

���� (a)�� $500; or

���� (b)�� threefold the damages
sustained as a result of the violation.� The damages shall include the difference
in price between the advertised discounted price and the fictitious former
price as conveyed by the person selling the merchandise or services, plus any
other damages as determined by the court.�

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill makes it an unlawful
practice under the consumer fraud act for any person to use a fictitious former
price in the sale of merchandise or services.� The bill codifies State
regulations concerning unlawful practices under the consumer fraud act.

���� A violation of the bill�s
provisions is an unlawful practice under the consumer fraud act, 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. In addition, 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.

���� In addition to any other
remedy available under the law, a person aggrieved by a violation of the bill
may bring a civil action in the Superior Court against a person using a
fictitious former price in the sale of merchandise or services.� The court is to
award reasonable attorney's fees and other litigation costs reasonably incurred,
and the greater of $500 or threefold the damages sustained as a result of the
violation.