Source: http://newjerseybusinesslawyersblog.com/page/2.html
Timestamp: 2017-11-18 04:20:15
Document Index: 532670300

Matched Legal Cases: ['§ 56', '§ 56', '§ 56', '§ 56', '§ 56', '§ 56', '§ 208', '§ 899', '§ 500', '§ 500']

New York & New Jersey Business Lawyer Blog - Page 2 of 17 - Published by New Jersey Business Attorneys — Samuel C Berger, PC
Consumer protection laws allow the recovery of damages from businesses for various fraudulent or deceptive practices. These laws tend to define prohibited conduct in very general terms. Businesses that provide goods or services to the general public should be aware of the latest developments in consumer protection law in order to avoid unwitting liability for deceptive business practices. The New Jersey Supreme Court has agreed to hear two appeals of putative consumer class actions alleging deceptive pricing schemes against two restaurant chains. While these cases only directly involve alcohol sales, they demonstrate how major consumer complaints can arise from seemingly minor practices.
The New Jersey statutes at issue are the Consumer Fraud Act (CFA), N.J.S.A. 56:8-1 et seq., and the Truth in Consumer Contract Warranty and Notice Act (TCCWNA), id. at 56:12-14 et seq. Among the many acts prohibited by the CFA is the offered, attempted, or completed sale of retail goods without clearly stating “the total selling price.” Id. at § 56:8-2.5. The statute also prohibits “the knowing, concealment, suppression, or omission of any material fact,” when such an action is intended to induce a consumer to make a purchase. Id. at § 56:8-2. The TCCWNA prohibits businesses from offering or entering into contracts with consumers that “violate[] any clearly established legal right of a consumer,” including a consumer’s rights under the CFA. Id. at § 56:12-15. Both statutes allow individual consumers to sue for damages. Id. at §§ 56:8-2.11, 56:12-17.
When an individual consumer’s damages are not enough to make the time and expense of pursuing a claim worthwhile, multiple consumers with similar claims can file a class action on behalf of all similarly situated consumers. To obtain class certification, the plaintiffs must be able to establish four elements: (1) that the class is sufficiently numerous that it would not be practical to join every plaintiff individually; (2) that all class members have factual or legal issues in common; (3) that the claims of the plaintiffs are typical of the rest of the class; and (4) that the plaintiffs can “fairly and adequately protect the interests of the class.” N.J.R.C. 4:32-1(a).
Updated: April 26, 2017 8:47 pm
Posted in: Real Estate, Tax Issues and Technology in Business
Updated: March 8, 2017 6:26 pm
New Jersey Consumer Protection Statute Poses Risks for Businesses with an Online Presence
New Jersey businesses that provide online services, sell goods online, or otherwise interact with their customers via the internet should be aware of some recent developments involving New Jersey consumer protection law. Two pending consumer class actions are seeking a broad application of the New Jersey Truth-in-Consumer Contract, Warranty and Notice Act (TCCWNA), N.J. Rev. Stat. § 56:12-14, et seq. While neither case has produced a final ruling, they have the potential to significantly affect businesses with an online presence, specifically in relation to the terms and conditions of website user agreements. Specific provisions could cause a business to violate state law, even inadvertently. Exactly when and how this might happen depends on multiple factors, including the nature of the business and the goods or services it provides.
Businesses often include agreements on their websites as a means of clarifying the business relationship—if any—established when someone visits the site and limiting their liability in various circumstances. A good business attorney will tell you that presenting an agreement in this manner is generally a good idea, but the reality is that almost no one ever reads these agreements before agreeing to them. When a consumer is presented with a contract that they cannot negotiate, essentially on a “take it or leave it” basis, courts tend to scrutinize the terms of those contracts very closely. The TCCWNA provides additional protections for consumers in this situation.
Under the TCCWNA, businesses may not use consumer contracts containing any “provision that violates any clearly established legal right of a consumer,” nor may a contract omit any legal “responsibility of a seller, lessor, creditor, lender or bailee.” N.J. Rev. Stat. § 56-12-15. This is a highly ambiguous restriction. The general rule in New Jersey has been not to bother contractual clauses that have no impact beyond the parties themselves. “Exculpatory clauses in private agreements that do not adversely affect the public interest are generally sustained.” Kane v. U-Haul Int’l Inc., 218 Fed. Appx. 163, 165 (3d Cir. 2007). A few recent cases may have changed this principle somewhat.
Updated: February 16, 2017 4:57 pm
Proposed New York State Regulations Address Cyberattack Risks
Cybersecurity is a critically important concern for businesses of all sizes and in all sectors of the economy. The growth of various electronic data systems, not to mention the internet, has brought almost countless new risks from hackers and others, who use new technologies to perpetrate traditional crimes like theft. Businesses that collect and maintain consumers’ personal information must be particularly careful, since cybersecurity breaches can affect their customers’ financial interests as well as their own. The New York State Department of Financial Services (DFS) announced new proposed cybersecurity regulations several months ago for businesses in the financial sector. The proposed regulations, which are reportedly the first of their kind in the country, would require covered businesses to undertake extensive measures to safeguard their data.
New York law currently requires state agencies and private businesses to notify the state’s attorney general of any cybersecurity breaches that result in the release of “private information” to unauthorized persons. “Private information” includes information that may be used to identify a particular individual and that includes details like a Social Security number, a driver’s license or other identification number, or information that could enable access to a credit card or another financial account. N.Y. State Tech. L. § 208, N.Y. Gen. Bus. L. § 899-AA. State law does not currently impose affirmative obligations on businesses to protect private information or to guard against cybersecurity breaches.
The governor announced the proposed DFS regulation in mid-September 2016. The regulation, which will be codified in Title 23 of the New York Codes, Rules, and Regulations (NYCRR), applies to any business or organization under the jurisdiction of the New York Banking Law, Insurance Law, or Financial Services Law. 23 NYCRR § 500.01(c) (proposed). It requires “covered entities” to perform a risk assessment on a periodic basis, initially to identify cybersecurity needs and vulnerabilities, and subsequently “to respond to technological developments and evolving threats.” Id. at § 500.09.
Updated: January 13, 2017 7:15 pm