Bill Text: NJ S1945 | 2012-2013 | Regular Session | Introduced


Bill Title: Regulates mailed manufacturer's rebates.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-01-09 - Substituted by A1516 (1R) [S1945 Detail]

Download: New_Jersey-2012-S1945-Introduced.html

SENATE, No. 1945

STATE OF NEW JERSEY

215th LEGISLATURE

 

INTRODUCED MAY 17, 2012

 


 

Sponsored by:

Senator  LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

 

 

 

 

SYNOPSIS

     Regulates mailed manufacturer's rebates.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning certain rebates 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.  As used in this section, "manufacturer's rebate" means any offer or promise that a manufacturer will refund to a consumer all or a portion of the price paid by the consumer for merchandise.

     b.    It shall be an unlawful practice for a manufacturer or its agent, or a retail mercantile establishment or its agent, to mail a manufacturer's rebate refund or payment to a consumer, unless:

     (1)   the refund or payment is enclosed in a sealed envelope or other secure container such that the rebate refund or payment is not accessible unless the container is opened or unsealed; and

     (2)   the portion of the mailing comprising the actual manufacturer's rebate refund or payment is clearly identified as such, in a manner that makes that portion readily distinguishable from the remainder of the contents of the mailing.

     Nothing contained in this section shall be construed to mean that the envelope or container, in which the manufacturer's rebate refund or payment is mailed, must identify its contents as a manufacturer's rebate refund or payment.

 

     2.    This act shall take effect on the first day of the fourth month following enactment.

 

 

STATEMENT

 

     The bill regulates mailed manufacturer's rebate refunds and payments.  Under the bill, as amended, it is an unlawful practice for manufacturers, retailers, or their agents to mail manufacturer's rebate refunds or payments to consumers, unless the refunds or payments are:

·        enclosed in a sealed envelope or other secure container such that the rebate refund or payment is not accessible unless the container is opened or unsealed; and

·        the portion of the mailing comprising the actual manufacturer's rebate refund or payment is clearly identified as such, in a manner that makes that portion readily distinguishable from the remainder of the contents of the mailing.

     As amended, the bill clarifies that while the portion of the mailing comprising the rebate refund or payment must be clearly identified, the envelope or container does not have to identify its contents as a refund or payment.

     It has come to the sponsor's attention that some rebate refunds or payments have been mailed to customers as little checks attached to post cards.  Refunds and payments sent in this way can easily be lost or stolen, or even confused for junk mail.  By requiring these payments and refunds to be enclosed in a sealed envelope or other secure container and clearly identifiable, this bill intends to prevent the intended recipients from losing the opportunity of receiving and utilizing mailed manufacturer's rebate refunds and payments.

     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.  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.

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