Bill Text: NJ S4110 | 2026-2027 | Regular Session | Introduced
Bill Title: Makes advertised discount by use of fictitious former price of merchandise or services unlawful practice under consumer fraud act.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-05-04 - Introduced in the Senate, Referred to Senate Commerce Committee [S4110 Detail]
Download: New_Jersey-2026-S4110-Introduced.html
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.
