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Businesses Lose Rights as Plaintiffs

One of the proposed amendments to the Consumer Fraud Act would not only be anti-consumer but anti-business. One of the amendments under A3333 would be the exclusion of businesses from being covered under the New Jersey Consumer Fraud Act. So these amendments to the New Jersey Consumer Fraud Act would not only be anti-consumer but prohibit businesses from appropriately being reimbursed for fees, costs and any compensatory damages if they were scammed, ripped off or otherwise deceived by either a consumer or another business.

Under certain circumstances, businesses are excluded from coverage under the Consumer Fraud Act when they are in the business of reselling the goods which they purchased. Under the circumstances, it is assumed that they have significant and enough experience to avoid being defrauded. However, many times businesses act as consumers. As an example, if a business is buying paper, toner, computers or other products for "consumption," there would be no difference between this business acting as a business and acting as a consumer. They are using and consuming goods. These goods are not being resold or a profit is not directly associated with their purchase. Thus, these new amendments would severely limit businesses' ability to recoup for fraud and only encourage further fraud upon businesses and other entities in New Jersey.