Bill Text: NJ A2980 | 2016-2017 | Regular Session | Introduced
Bill Title: Prohibits retail mercantile establishments from imposing surcharges on consumer credit card purchases.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-02-16 - Introduced, Referred to Assembly Consumer Affairs Committee [A2980 Detail]
Download: New_Jersey-2016-A2980-Introduced.html
Sponsored by:
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
SYNOPSIS
Prohibits retail mercantile establishments from imposing surcharges on consumer credit card purchases.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning credit card surcharges 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. As used in this act:
"Credit card" means a card, plate or other single credit device that may be used from time to time to obtain credit.
"Merchandise" means any objects, wares, merchandise, commodities, services, or anything offered directly or indirectly to consumers for sale or rental at retail.
"Retail mercantile establishment" means any place of business where merchandise is offered at retail to consumers.
"Surcharge" means any additional amount imposed by a retail mercantile establishment at the time of a sales transaction that increases a charge to a consumer for the use of a credit card.
2. a. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a retail mercantile establishment to impose a surcharge on a consumer who uses a credit card instead of cash, check, or any similar means of payment.
b. Notwithstanding the provisions of subsection a. of this section, a retail motor fuel dealer may sell similar fuels at different prices to cash and credit customers, provided that neither price is below the net cost of the fuel to the retail dealer plus all selling expenses, as provided in section 201 of P.L.1938, c.163 (C.56:6-2), including, in the case of credit sales, the cost to the dealer of providing credit sales.
3. This act shall take effect immediately.
STATEMENT
This bill prohibits retailers from imposing a surcharge on consumers for the use of a credit card. The bill clarifies that, notwithstanding this prohibition, a retail motor fuel dealer is permitted to sell similar fuels at different prices to cash and credit customers provided that neither price is below the net cost of the fuel to the retailer dealer plus all selling expenses, as provided in section 201 of P.L.1938, c.163 (C.56:6-2), including, in the case of credit card sales, the cost to the dealer of providing credit sales.
Under the bill, a violation is an unlawful practice under the consumer fraud act. 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. In addition, a violation 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.
