Source: https://www.bipc.com/caveat-auctor-surge-in-consumer-class-actions-under-new-jersey%E2%80%99s-truth-in-consumer-contract,-warranty-and-notice-act
Timestamp: 2019-04-23 06:51:39+00:00

Document:
The Truth-in-Consumer Contract, Warranty and Notice Act, N.J.S.A. 56:12-14 to -18 (TCCWNA) was enacted in 1982 but has historically been under-utilized by plaintiffs until recently. In the past year alone, approximately 40 class actions have been filed alleging violations of TCCWNA against businesses such as Wal-Mart, Target, J. Crew, Burlington Coat Factory, TOYS ‘R’ US, Bed Bath & Beyond, Johnston & Murphy, Whirlpool and the New Jersey Devils. TCCWNA’s all-encompassing scope covers almost every form of written consumer contract, warranty, notice, advertisement or sign – from restaurant menus to in-store displays to website terms and conditions of use – that is displayed, offered or entered into with a consumer or potential consumer. And the statute carries a mandatory, strict-liability penalty of at least $100 per violation which, for businesses with substantial customer contacts, can rapidly reach into the millions or tens of millions of dollars.
Given that most businesses nowadays have an online presence or an e-commerce platform, the expansive reach of TCCWNA could be a pricey trap for unwary enterprises. Understanding the nuances of TCCWNA is imperative for businesses that routinely utilize consumer contracts, disclaimers, notices, signs and advertisements – and particularly national businesses operating either physically or virtually in New Jersey – to avoid being the target of a costly consumer-fraud class-action lawsuit.
Second, Section 16 of TCCWNA prohibits sellers from providing a contract, notice or sign stating that any of its provisions is or may be void, unenforceable or inapplicable in some jurisdictions without specifying which of those provisions are or are not void, unenforceable or inapplicable in New Jersey.4 This means that sellers must explain differences in a consumer’s rights or responsibilities that may exist among different jurisdictions, especially when a consumer contract may be used in multiple jurisdictions.5 (Significantly, Section 16 of TCCWNA does not apply to warranties).
While some aspects of TCCWNA may appear difficult to comply with, New Jersey courts have started building a legal analytical framework as to what sort of written language is permissible and what language may violate TCCWNA. These decisions are relevant to standard terms and conditions contained in many consumer contracts. Businesses need to be aware of these developments when drafting or revising their consumer contracts, notices, warranties and the like applicable to New Jersey consumers.
2Walters v. Dream Cars Nat'l, LLC, 2016 WL 890783, *5 (N.J. Superior Ct. Law Div. Mar. 07, 2016); McGarvey v. Penske Auto Group, Inc., 486 Fed. Appx. 276, 282 (3d Cir. 2012); Perrotta v. LG Elecs. USA, Inc., 2013 WL 4446975, *7 (D.N.J. Aug. 15, 2013).
3See, e.g., Watkins v. DineEquity, Inc., 591 F. App'x 132, 134 (3d Cir. 2014).
4See N.J.S.A. 56:12-16 (significantly, Section 16 of TCCWNA does not apply to warranties).
5Walters, 2016 WL 890783 at *6.
6See, Smith v. Vanguard Dealer Servs., L.L.C., No. A-3875-09T2, 2010 WL 5376316, at *3 (N.J. Super. Ct. App. Div. Dec. 21, 2010).
9See, Weinberg v. Sprint Corp., 173 N.J. 233, 250 (2001); Barrows v. Chase Manhattan Mortgage Corp., 465 F. Supp. 2d 347, 362 (D.N.J. 2006); N.J.S.A. 56:12-17.
10Walters, 2016 WL 5890783 at *5; Barbarino v. Paramus Ford, Inc., 2015 WL 5475928, *2 (N.J. Super. Ct. Law Div. Sept. 11, 2015).
11Johnson v. Wynn's Extended Care, Inc., 2015 WL 8781374, *1-2 (3d Cir. Dec. 15, 2015).
12Gomes v. Extra Space Storage, Inc., 2015 WL 1472263, *9 (D.N.J. Mar. 31, 2015) (citing Martinez-Santiago v. Public Storage, 38 F. Supp. 3d 500, 510-511 (D.N.J. 2014)).
13Barbarino, 2015 WL 5475928 at *4. However, the plaintiffs in Barbarino have appealed, and the Appellate Division has yet to issue its decision.
14Castro v. Sovran Self Storage, Inc., 114 F. Supp. 3d 204, 213 (D.N.J. 2015).
15Gomes, 2015 WL 1472263 at *8; see also Martinez-Santiago, 38 F. Supp. 3d at 511 (holding that provision stating that terms of storage unit rental agreement "may be invalid or prohibited in the state in which the premises were located" violated Section 16 of TCCWNA because, while it did not "expressly state, in a simple, declarative sentence, that some provisions may be invalid under state law", it implied such consequence with references to the location of the premises); Greenberg v. Mahwah Sales & Serv., Inc., 2016 WL 193485, *4 (N.J. Super. Ct. Law Div. Jan. 08, 2016) (holding that phrase "unless prohibited by law" following a provision did not violate Section 16 of TCCWNA because it did not "declaratively or impliedly state that the sales tax provisions are or may be void, enforceable or inapplicable in a particular jurisdiction, without specifying enforceability in New Jersey").

References: v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v.