Know before you go
- The act bars deception, fraud, misrepresentation and knowingly hiding important facts in a sale or advertisement.
- A consumer who sues successfully can recover triple damages plus attorney’s fees.
- Complaints go to the Division of Consumer Affairs or a county or municipal consumer affairs office.
New Jersey’s Consumer Fraud Act is one of the broadest consumer protection laws in the country, and it sits behind almost every other topic on this site. Contractor disputes, used car sales, store refund signs and even some rental advertising all trace back to it. Knowing its basic shape makes it easier to recognize when a bad deal is also an unlawful one.
What the law prohibits
At its core, the act makes it illegal to use deception, fraud, false promises, misrepresentation or the knowing concealment or omission of important facts in connection with the sale or advertisement of goods, services or real estate. The Division of Consumer Affairs, part of the Office of the Attorney General, enforces it through its Office of Consumer Protection. The Division says most complaints it receives involve cars, home repair, credit and debt collection, and loan services.
Everyday examples from state guidance
The statute is written in general terms, and regulations and agency guidance fill in specific situations. A few that consumers run into regularly:
- Advertised prices. A store that advertises an item at a price and then refuses to honor it may be engaged in deceptive advertising.
- Refund policies. Most retailers must post their refund policy for non-perishable goods where shoppers can see it, on the item, at the register or at the entrance. Failing to post it, or not honoring it, may violate the act.
- Sold-out specials. Advertised merchandise generally must be stocked in quantities that meet reasonably expected demand, unless the ad says the supply is limited or the sale is a genuine closeout or clearance.
- Rain checks. Stores do not have to offer them, but a store that advertises rain checks must honor them within 60 days or give an extension the customer agrees to.
- Gift cards. Cards and certificates must keep their full value for 24 months after purchase; after that, a disclosed dormancy fee of up to $2 a month may apply, and a balance under $5 can be refunded in cash on request.
- Used car ads. A dealer may not advertise a used car without disclosing known prior damage with repairs over $1,000.
What a consumer can recover
The act gives an injured consumer a private right to sue. A consumer who proves a loss caused by an unlawful practice may recover triple damages plus attorney’s fees. That fee-shifting provision matters, because it can make smaller claims practical to bring with a lawyer.
Tip: Save everything: the advertisement or a screenshot of it, receipts, contracts, texts and emails, and notes of phone calls with dates. A Consumer Fraud Act claim is built on showing exactly what was promised or concealed and what it cost you.
How to file a complaint
The Division’s own advice is to give the business a chance to fix the problem first. If that does not work:
- File a complaint online through the Division of Consumer Affairs.
- Or call the Division’s consumer service line at 1-800-242-5846 and ask for a complaint form.
- Or contact the county or municipal consumer affairs office where the business is located.
The Division can investigate, mediate and take enforcement action, but filing a complaint is not the same as suing. A consumer who wants money back may also need to go to court. For amounts up to $5,000, the Small Claims section is designed for people without lawyers; see Small Claims Court in New Jersey: Limits, Filing Fees, Where to File and How to Prepare.
How it connects to other protections
Several specific New Jersey laws work alongside the Consumer Fraud Act and are easier to use for their own situations:
| Situation | Specific law or program | Where to read more |
|---|---|---|
| Home repair and remodeling | Contractors’ Registration Act and home improvement rules | Hiring a Home Improvement Contractor in New Jersey: Registration, Written Contracts, the 3-Day Cancel Right and Disputes |
| Buying a used car from a dealer | Used Car Lemon Law and dealer disclosure rules | Buying a Used Car in New Jersey: The Buyers Guide, the Dealer Warranty and the Myth of the 3-Day Cancel |
| A defective new car | New Car Lemon Law | New Jersey Lemon Law Basics: When a New or Used Car Qualifies and How the State Process Works |
| Collection calls and letters | Federal debt collection rules | Dealing With Debt Collectors in New Jersey: Calls, Validation Notices, Disputes and What Collectors Cannot Do |
Red flags worth acting on
State consumer guidance repeats a few warning signs across many kinds of purchases. A seller who wants cash or a wire transfer only, a business that lists only a post office box, prices drastically lower than everywhere else, pressure to sign immediately and free trials that quietly turn into monthly charges all deserve a second look before money changes hands.
Paying by credit card can also help. If something goes wrong, a card purchase can be disputed with the issuer, while cash and wire transfers are nearly impossible to recover.
Does the act apply to landlords?
The Truth in Renting guide notes that deception or concealment of important information in connection with the sale or advertisement of real estate is covered, and refers tenants to the Division of Consumer Affairs for questions. Day-to-day tenancy issues such as deposits and repairs, however, have their own rules, covered under the renting section of this site.