New Jersey S 525: Concerns certain actions brought under "Truth-in-Consumer Contract, Warranty and Notice Act."

Bill Text

S525 

SENATE, No. 525 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator JAMES BEACH

District 6 (Burlington and Camden)

SYNOPSIS

���� Concerns certain actions brought under 
"Truth-in-Consumer Contract, Warranty and Notice Act."

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act concerning certain consumer fraud actions and amending P.L.1981, 
c.454.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� Section 4 of P.L.1981, 
c.454 (C.56:12-17) is amended to read as follows:

���� 4.��� a.�� Any person 
who violates the provisions of [this 
act] P.L.1981, 
c.454 (C.56:12-14 et seq.) shall be liable to the aggrieved consumer for a 
civil penalty of not less than $100.00 or for actual damages, or both at the 
election of the consumer, together with reasonable attorney's fees and court 
costs.� This may be recoverable by the consumer in a civil action in a court of 
competent jurisdiction or as part of a counterclaim by the consumer against the 
seller, lessor, creditor, lender or bailee or assignee of any of the aforesaid, 
who aggrieved him.� A consumer also shall have the right to petition the court 
to terminate a contract which violates the provisions of section 2 of [this act] P.L.1981, 
c.454 (C.56:12-15) and the court in its discretion may void the contract.

���� b.��� No class 
certification shall be granted for any alleged violation of P.L.1981, c.454 
(C.56:12-14 et seq.) in the absence of an ascertainable economic loss resulting 
from the alleged violation.

���� c.���� (1)�� Prior to the 
commencement of an action pursuant to this section, an aggrieved consumer whose 
economic loss is $250 or less shall first request reimbursement from the seller, 
lessor, creditor, lender or bailee or assignee of any of the aforesaid, as 
applicable. �Any request for reimbursement made pursuant to this subsection 
shall be in writing and sent via certified mail, return receipt requested, and 
by regular mail.� No action pursuant to this subsection shall be brought until 
the 35th day following the mailing of the request for reimbursement.

���� (2)�� In an action brought by 
a consumer pursuant to this section that is first asserted as a counterclaim, 
the reimbursement request requirements of paragraph (1) of this subsection, if 
applicable, shall be satisfied if the consumer�s pleading states the nature of 
the counterclaim and the amount of the economic loss. �The party who has been 
served with the counterclaim pleading and who disputes the economic loss stated 
therein may tender the full amount of the claimed loss to the court or to the 
attorney for either party, to be held in escrow pending the outcome of the case.� 
If that party chooses to do so, then attorney�s fees shall not be awarded if 
the consumer�s counterclaim prevails.

(cf: P.L.1981, c.454, s.4) 

���� 2.��� This act shall take 
effect immediately.

STATEMENT

���� This bill amends the 
�Truth-in-Consumer Contract, Warranty and Notice Act,� (TCCWNA) P.L.1981, c.454 
(C.56:12-14 et seq.), by requiring aggrieved consumers to have suffered an 
ascertainable economic loss in order to commence a class-action lawsuit for 
violation of the TCCWNA.� The bill further provides that a consumer who suffers 
an economic loss of $250 or less as a result of a violation of the TCCWNA must 
first request reimbursement for the loss prior to the commencement of a legal 
action.

���� Pursuant to this bill, a 
request for reimbursement for an economic loss must be made in writing and sent 
via certified mail, return receipt requested, and by regular mail.� The bill 
provides that no action shall be filed until the 35th day following the mailing 
of the request for reimbursement. 

���� In addition, an action brought 
pursuant to the TCCWNA that is first asserted by a consumer as a counterclaim 
shall satisfy the reimbursement request requirement if the consumer asserts in 
the pleading the nature of the counterclaim and the economic loss in the amount 
of $250 or less.� A party who has been served with the counterclaim pleading, 
and who disputes the economic loss stated therein, may choose to tender the 
full amount of the claimed loss to the court or to the attorney for either 
party to be held in escrow pending the outcome of the case.� Should that party 
choose to do so, attorney�s fees shall not be awarded if the consumer�s 
counterclaim prevails. 

���� A consumer whose economic loss 
exceeds $250 may take legal action under the TCCWNA without first requesting 
reimbursement.