ASSEMBLY, No. 2477
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
“Free Means Free Act”; prohibits misleading advertising of free products.
CURRENT VERSION OF TEXT
As reported by the Assembly Consumer Affairs Committee on October 24, 2024, with amendments.
An Act concerning misleading advertising and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the “Free Means Free Act.”
2. As used in this act:
“Contracted service” means a 1membership, subscription, or technology1 service offered for sale or sold and agreed to in a contract between a provider and a person.
“Product” means any device, equipment, item, or other 1[product] similar object1 offered for sale or sold in this State 1[, including products offered for sale or sold]1 in conjunction with a contracted service.
“Provider” means a person that sells or offers to sell a contracted service. 1The term excludes Internet service providers as defined in section 3 of P.L.2007, c.272 (C.56:8-170).1
“Ultimate cost” means the final cost of a product sold or offered for sale, or provided in conjunction with a contracted service, as a sum of all yearly, monthly, or otherwise divided or totaled payments, and including any shipping, activation, cancellation, return, or restocking fees associated with the product, and contracted service if applicable.
3. a. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a 1[person] provider1 to sell or offer for sale any product if the 1[person] provider1 fails to clearly and conspicuously disclose the ultimate cost of the product, including the ultimate cost after the assessment of any fees in the event that the person cancels or terminates a contracted service with a provider or returns the product to the 1[seller or]1 provider.
b. A 1[person] provider1 shall clearly and conspicuously indicate, at the point of sale or contract agreement, the ultimate cost of any product offered for sale or sold by 1[a person] the provider1, including:
(1) whether the cost of the product was offered by the 1[seller or]1 provider as free or at a reduced rate, as part of the sale or contract;
(2) the retail value of the product and any associated subsidy offered by the 1[seller or]1 provider;
(3) any cancellation fee to be assessed by the provider if the person cancels or terminates the contract, including, if applicable, any formula used to determine the total cancellation fee; and
(4) any return or restocking fee to be assessed by the 1[seller or]1 provider if the person returns the product.
4. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a 1[person] provider1 to advertise any product as free, or offer for sale or sell any product at no cost, if the 1[person] provider1 : (1) assesses a return or restocking fee for the return of the product or another product sold in conjunction with the free product; (2) assesses a cancellation fee for early termination of a contracted service and the cancellation fee incorporates any actual value or cost of the product; or (3) includes any amount to cover the cost of the product within a bill regularly assessed to a person for the contracted service.
5. This act shall take effect on the first day of the third month next following the date of enactment.