ASSEMBLY CONSUMER AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 551

with committee amendments

STATE OF NEW JERSEY

DATED:  OcTOBER 24, 2024

      The Assembly Consumer Affairs Committee reports favorably and with committee amendments Assembly Bill No. 551.

      As amended, this bill permits certain consumers up to five business days to cancel home improvement contracts and up to three business days to cancel certain consumer contracts for any reason. 

      Under the amended bill, a consumer may cancel a home improvement contract at any time for any reason before midnight of the fifth business day after the consumer receives a copy of the signed contract or, in the case of a consumer contract, at any time for any reason before midnight of the third business day after the consumer enters into the consumer contract.  Currently, consumers have up to three business days to cancel a home improvement contract.  The change being made under this bill reflects the potential need of certain consumers who may need more time to review a home improvement or consumer contract.

      Pursuant to the bill, the three business day cancellation period for consumer contracts only applies to contracts for the sale of goods for the price of $500 or more.

      For the purposes of this bill, “consumer” means an individual over the age of 60.  The term “consumer” shall also include an individual with an intellectual disability, regardless of age.

      This bill was pre-filed for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  permit a consumer up to five business days to cancel a home improvement contract after the consumer receives a copy of the signed contract;

      (2)  permit a consumer up to three business days to cancel a consumer contract for the sale of goods for the price of $500 or more;

      (3)  define the terms “consumer” and “consumer contract;” and

      (4)  make certain technical changes.