LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 4107
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 5, 2026
SUMMARY
|
Synopsis: |
Prohibits seller providing service or selling goods from charging surcharge to customer using debit card or gift card. |
|
Type of Impact: |
Annual State expenditure and revenue increases. |
|
Agencies Affected: |
Department of Law and Public Safety. |
|
Annual Fiscal Impact |
|
|
|
|
|
State Revenue Increase |
Indeterminate |
|
||
|
State Expenditure Increase |
Indeterminate |
|
||
· The Office of Legislative Services (OLS) finds that this bill’s prohibition on sellers imposing surcharges on debit, gift, or electronic benefit transfer cards would result in indeterminate annual State revenue increases from penalties and increased expenditure costs from enforcement that may be incurred by the Division of Consumer Affairs in the Department of Law and Public Safety. The OLS, however, cannot determine the potential costs to the division due to the uncertainty regarding the number of individuals who will be regulated and the specific operational decisions the division will make to implement this bill.
· The OLS anticipates that the bill would result in the annual collection of indeterminate fines and penalty payments from violators of statutory and regulatory requirements. A violator may receive a penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense under the consumer fraud act.
BILL DESCRIPTION
This bill prohibits a seller providing a service or selling goods from charging a surcharge when a customer uses a debit card, gift card, or electronic benefit transfer card to pay for the transaction.
The bill further provides that if a seller imposes a surcharge on credit card transactions, the seller is required to clearly and conspicuously disclose, prior to payment, that the seller is prohibited from applying a surcharge to payments made by debit card or gift card.
A violation of the bill’s provisions is an unlawful practice under the consumer fraud act. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Office of the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that this bill’s prohibition on sellers imposing surcharges on debit, gift, or electronic benefit transfer cards would result in indeterminate annual State revenue increases from penalties and increased expenditure costs from enforcement that may be incurred by the Division of Consumer Affairs in the Department of Law and Public Safety.
State Expenditure Increase: This bill’s prohibition of sellers imposing surcharges on debit, gift, or electronic benefit transfer cards would result in increased costs from enforcement incurred by the Division of Consumer Affairs. The division enforces the consumer fraud act, which regulates advertising and sales techniques to prevent fraud, deceit, and misrepresentation in the sale of goods and services. The OLS cannot determine the costs to the division due to the uncertainty regarding the number of sellers who will be regulated and the specific operational decisions the division will make to implement this bill. Additionally, the Office of the Attorney General may incur some indeterminate costs for its responsibilities under the bill.
State Revenue Increase: The OLS anticipates that the State would annually collect indeterminate fines and penalty payments from violators of statutory and regulatory requirements of the bill. However, the OLS has no information on which to base an estimate of the number and magnitude of future penalty assessments and payments and thus cannot project the amount the State may collect.
|
Section: |
|
|
Analyst: |
Lead Fiscal Analyst |
|
Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).