ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4519

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 5, 2022

      The Assembly Commerce and Economic Development Committee reports favorably Assembly Bill No. 4519, with committee amendments.

      This bill, as amended, would prohibit a motor vehicle dealer or manufacturer of motor vehicles sold in this State from offering a consumer a subscription service, or charging a consumer a post-purchase fee, for a motor vehicle feature that (1) utilizes components and hardware already installed on the motor vehicle at the time of the vehicle’s purchase or lease; and (2) would function after activation without ongoing expense to the dealer, manufacturer, or third-party service provider.

      A violation of the bill would be 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 a subsequent offense. In addition, a violation may result in the Attorney General’s issuance of a cease and desist order, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.

COMMITTEE AMENDMENTS:

      The committee amended the bill to prohibit a motor vehicle dealer or manufacturer of motor vehicles sold in this State from charging certain post-purchase fees.