Bill Text: NJ A2413 | 2018-2019 | Regular Session | Introduced
Bill Title: Establishes requirements for advertised reference pricing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-02-01 - Introduced, Referred to Assembly Consumer Affairs Committee [A2413 Detail]
Download: New_Jersey-2018-A2413-Introduced.html
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
Establishes requirements for advertised reference pricing.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning advertised prices 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 and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to advertise or represent a price as a former price of any merchandise, unless:
(1) the alleged former price was the prevailing market price within three months immediately preceding the publication of the advertisement; or
(2) the date when the alleged former price did prevail is clearly, precisely, and conspicuously stated in the advertisement.
b. As used in this section, "prevailing market price" means the worth or value of any merchandise advertised.
2. This act shall take effect immediately.
STATEMENT
This bill establishes requirements for advertising the former price of any merchandise.
Under the bill, an advertised former price must clearly indicate the date of the former price or be the previous prevailing market price. The bill defines "prevailing market price" to mean the worth or value of any merchandise advertised. Merchandise includes any objects, wares, goods, commodities, services, or anything offered to the public for sale.
The bill provides that it would be an unlawful practice under the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), to advertise the former price of merchandise if it does not meet the requirements set forth in the bill. Specifically, an advertised former price would need to be: (1) the prevailing market price within three months immediately preceding the publication of the advertisement; or (2) identified by the date on which that former price prevailed in a clear and conspicuous manner in the advertisement.
An unlawful practice 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, a violation can result in a cease and desist order issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
Retailers advertise original prices, comparison prices, or reference prices when promoting comparative savings or discounts available to consumers. For instance, retailers may advertise the percentage or dollar amount off of a "regular" or "original" price, or invite customers to "compare" the retailer's own former price to a current deal or a higher price offered elsewhere.
This consumer issue has gained attention with the growth of e-commerce. Some retailers are accused of overstating savings and falsely deceiving consumers to believe they were obtaining substantial discounts off original prices or in comparison to other retailers. A number of states have laws and regulations regarding the use of reference pricing.
