Consumer Fraud Act, N.J.S.A. 56:8-1 et seq.
The Consumer Fraud Act is a pro-consumer law that protects buyers from deceptive, misleading, or unconscionable marketplace practices. Successful claims can carry treble damages (three times the consumer’s actual financial loss) plus mandatory fee-shifting that requires the business to pay the consumer’s court costs and attorney fees.
- Affirmative acts include fraud, deception, false pretense, or misrepresentation. Consumers do not need to prove intent to deceive for affirmative misrepresentations.
- Knowing omissions include intentionally concealing, suppressing, or omitting a material fact with intent that others rely on it.
- Regulatory violations include violating rules established by the NJ Division of Consumer Affairs, such as used vehicle advertising standards.
Used Car Lemon Law, N.J.S.A. 56:8-67 to 80
Protects buyers of qualifying used passenger vehicles purchased from licensed dealers for more than $3,000, with under 100,000 miles and less than seven model years old. It requires dealer warranties based on mileage and covers significant recurring defects that impair safety, use, or value.
Truth in Consumer Contract, Warranty and Notice Act, N.J.S.A. 56:12-14 to 18
TCCWNA is designed to prevent illegal terms or clauses from being written into contracts, warranties, notices, or signs. A written agreement that contains a provision violating New Jersey or federal law may create liability.
Service Contract Act, N.J.S.A. 56:12-86 through 12-96
Regulates the sale and issuance of service contracts, commonly known as extended warranties or vehicle service contracts, and treats violations as unlawful practices under the Consumer Fraud Act.
- Service contracts must be sold in compliance with the Act.
- Providers must give assurance of faithful performance.
- Disclosure, contract-content, and recordkeeping rules apply.
- Service contracts are not insurance, though reimbursement insurance policies remain regulated.
Used Car Inspection Law, N.J.S.A. 39:10-26 through 10-30
Requires licensed motor vehicle dealers to sell used passenger vehicles that meet New Jersey official safety inspection standards when the vehicle is intended to be registered in this State, unless the buyer specifically waives the requirement in writing.
- If the vehicle fails inspection after sale and no waiver was signed, the dealer must repair the defects at no charge or refund the full purchase price, subject to statutory conditions.
- Dealers must inform buyers of these obligations before sale and ask whether the car will be registered in New Jersey.
Consumer Protection Leasing Act, N.J.S.A. 56:12-60 through 70
Protects consumers who lease motor vehicles by requiring clear, detailed, and conspicuous written disclosure of all material lease terms (monthly payments, residual value, fees, early-termination rights, and similar items) and by regulating how lessors calculate and charge for early termination, excess mileage, and wear-and-tear. It also gives lessees a one-business-day right to review the lease contract before signing, which can be waived in writing. Violations are treated as unlawful practices under the Consumer Fraud Act.
Off-Site Sales Act, N.J.S.A. 39:10-19.1 through 19.4
Defines and regulates off-site sales by properly licensed dealers. It allows controlled flexibility for events while preserving MVC oversight and consumer safeguards.
- MVC provisional permits or compliance conditions may apply.
- A physical booth or desk may be required at the off-site location.
- Restrictions apply to what counts as an off-site sale.
On-Line Sales Act, N.J.S.A. 39:10-19.5
Authorizes licensed motor vehicle dealers to conduct online sales while maintaining a physical New Jersey presence that meets established place of business standards.
- Electronic records of online sales are permitted if immediately inspectable by MVC.
- Online sales are limited to vehicles in dealer inventory or qualifying parent/affiliate inventory.
Modernization of Motor Vehicle Transaction Act, N.J.S.A. 39:10-39 through 10-42
Modernizes transaction processes by authorizing online sales, electronic signatures, electronic records, and electronic submission of transaction documents while preserving dealer-licensing and physical-location requirements.
Vehicle Protection Product Warrantors Act, N.J.S.A. 56:8-167 and N.J.S.A. 17:18-19 through 17:18-26
Requires registration and financial safeguards for warrantors of vehicle protection products, such as anti-theft alarms, window etching, body-part marking, steering locks, and similar products sold with warranties covering specified incidental costs.
- Warrantors must register annually with the NJ Division of Consumer Affairs.
- Warrantors must pay required fees, file sample warranties, and maintain warranty reimbursement insurance.
- The warranties are not insurance.
MVC Dealer Regulations, N.J.A.C. 13:21-15.1 et seq.
Regulates licensed motor vehicle dealers and leasing dealers, including eligibility, established place of business requirements, temporary registrations, dealer plates, records, and enforcement.
Unfair Trade Practices - Used Motor Vehicles - Sale and Warranty, N.J.A.C. 13:45A-26F.1 to Appendix D
Implements the Used Car Lemon Law and prohibits unfair or deceptive trade practices in used motor vehicle sale and warranty practices.
- Requires minimum written warranties on most covered used passenger vehicles.
- Sets conditions for warranty waivers and as-is disclosures.
- Mandates bonding, administrative-fee collection, reporting, repair procedures, and dispute-resolution procedures.
- Includes required forms in Appendices A through D.
Motor Vehicle Advertising Practices, N.J.A.C. 13:45A-26A.1 to 13:45A-26A.10
Prohibits unfair, deceptive, or misleading advertising by motor vehicle dealers and salespersons in New Jersey.
- Bans false, misleading, or unsubstantiated statements in any advertising medium.
- Sets requirements and prohibitions for price advertising, free offers, financing terms, warranties, and vehicle condition claims.
- Requires clear and conspicuous disclosures when certain terms are used.
- Violations are treated as unlawful practices under the Consumer Fraud Act.
Automotive Sales Practices, N.J.A.C. 13:45A-26B.1 to 13:45A-26B.4
Addresses pre-delivery service fees and documentary service fees.
Vehicle Protection Products Warranty Regulations, N.J.A.C. 13:45A-30.1 through 30.9
Requires registration and financial safeguards for warrantors of vehicle protection products sold with written warranties promising coverage of specified incidental costs.
