Bill Text: NJ A1140 | 2010-2011 | Regular Session | Introduced
Bill Title: Includes security fraud as violation of consumer fraud act.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A1140 Detail]
Download: New_Jersey-2010-A1140-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblywoman ELEASE EVANS
District 35 (Bergen and Passaic)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Co-Sponsored by:
Assemblyman Mainor, Assemblywomen Spencer and Tucker
SYNOPSIS
Includes security fraud as violation of consumer fraud act.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning certain consumer fraud practices 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. (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, securities, 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, business entity or association, and any agent, employee, salesman, 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; and
(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 fraud in the sale of securities is a violation of the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.). The bill adds "securities" to the definition of "merchandise" in the act, which protects consumers from deceptive sales or advertising practices in the marketing of merchandise. The consumer fraud act currently defines merchandise to include any objects, wares, goods, commodities, services or anything offered, directly or indirectly, to the public for sale.
