SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 3928

STATE OF NEW JERSEY

DATED:  FEBRUARY 10, 2025

      The Senate Commerce Committee reports favorably Senate Bill No. 3928.

      This bill limits the general application of certain consumer contracts.

      Under the bill, a consumer contract for a service offered by a company must apply solely to the service offered by the company and purchased by the consumer.  The consumer contract will be prohibited from containing provisions that allow or require the contract to govern the circumstances under which the consumer purchases other products or services from the contracting company, or an affiliate of the company, that are not offered pursuant to the contract.

      For the purpose of this bill, “consumer contract” means a written agreement in which an individual contracts for a service and is obtained for personal, family, or household purposes. “Consumer contract” does not include a written agreement involving a transaction in securities with a broker-dealer registered with the Securities and Exchange Commission, or a transaction in commodities with a futures commission merchant registered with the Commodity Futures Trading Commission.