Car Dealerships and Home Contractors likely Excluded from Coverage: Consumer Lawyer, changes to the Consumer Fraud Act.
Most Transactions would be Excluded from Coverage: Consumer Lawyer, changes to the Consumer Fraud Act.
Here is the newest provision and the most damaging.
b. not apply to actions or transactions otherwise permitted or regulated by the Federal Trade Commission or any other regulatory body or officer acting under statutory authority of this State or the United States.
So what is the effect of this newest provision of the Consumer Fraud Act?
The following businesses would be free from the Consumer Fraud Act:
CAR DEALERSHIPS: Since car dealerships are regulated by the FTC, Division of Banking and Insurance, Motor Vehicle Commission and others, the Consumer Fraud Act would not apply. THAT IS CORRECT. CAR DEALERSHIPS WOULD BE FREE TO VIOLATE THE STATUTORY AND ADMINISTRATIVE GUIDELINES THAT HAVE BEEN CREATED OVER THE YEARS FOR THE PROTECTION OF THE CONSUMERS.
HOME IMPROVEMENT CONTRACTORS: Home improvement contractors are regulated by the Division of Consumer Affairs, so the Consumer Fraud Act would not likely apply.
Banks, credit card companies, phone companies, drug companies, insurance companies, credit reporting agencies, realtors: all of these business are heavily regulated and these entities would be free to do as they please without any penalties.
REMEMBER: THE ATTORNEY GENERAL'S OFFICE WOULD ALSO NOT BE ABLE TO PROCEED UNDER THE CONSUMER FRAUD ACT FOR CIVIL PENALTIES, SINCE THESE BUSINESSES WOULD BE EXEMPT FROM THE REACH OF THE NEW JERSEY CONSUMER FRAUD ACT.