Consumer Fraud
What is Consumer Fraud in New Jersey?
Consumer fraud is any unconscionable business practice that is prohibited by the New Jersey Consumer Fraud Act. Some examples include false advertising, grossly excessive prices, and bait and switch, where a company might offer a product at one price, and what’s available is a different product or a more expensive version of the same product. Consumer fraud is any type of misrepresentation of a product or service. It’s dishonesty and violations of Consumer protection regulations.
How Can An Attorney Help Me If I’ve Been Scammed in New Jersey?
If you suspect a company has scammed you, reach out to an experienced litigator who’s familiar with the Consumer Fraud Act. They will evaluate your case and tell you if you have a legitimate claim. An attorney will tell you if it’s a valuable case and whether the Consumer Fraud Act has been violated, and they’ll assist you every step of the way with preparing your claim and evidence, filing and litigating the case, and ideally obtaining a favorable settlement even if it goes to trial.
What Law Protect Consumers from Fraud in New Jersey?
In the State of New Jersey, the primary law that protects consumers from fraud is the Consumer Fraud Act, but it doesn’t work alone. There are some other laws it incorporates by reference. So for example, the Consumer Fraud Act incorporates the Home Improvement Practice statute. That means that any violation of the Home Improvement Practice regulation is also a violation of the Consumer Fraud Act. If there is a violation of the Home Improvement Practice act, the plaintiff can bring a Consumer Fraud Act claim, which includes things like triple damages and recovery of attorney’s fees against the defendant. So instead of just recovering your actual damages, you get to recover your actual damages plus those additional amounts.
How Long Do You Have to File a Consumer Fraud Lawsuit in New Jersey?
The statute of limitations in the state of New Jersey to bring a Consumer Fraud Act claim is six years. But don’t wait that long, as there are other claims with shorter deadlines. For instance, the deadline for negligence is two years. If you wait three or four years, then try to sue for the Consumer Fraud Act violation, you won’t be able to bring a claim for negligence along with it because it’s too late. Furthermore, evidence may no longer be available, people’s memories of events may be hazy, and it’s harder to find the defendants’ assets and other evidence after a lot of time has passed. That’s why it’s important to file suit shortly after the event occurred.
Can You Sue a Business for False Advertising in New Jersey?
It’s possible to sue a business for false advertising. However, the person bringing the lawsuit needs to have suffered actual damages. If you happen to notice a company’s advertising is false, that alone doesn’t entitle you to bring a lawsuit. If you suffer a loss, the amount you recover will be limited to actual damages that you can prove in court. Those damages can be tripled, and you can also collect your attorney’s fees. For example, if a car dealer sells you a car and lies about its condition or type, you can sue. It’s false advertising and you could sue for the difference between what you agreed to purchase and the value of what you actually bought.
What's the Difference Between Consumer Fraud & Breach of Contract on New Jersey?
The main difference between consumer fraud and breach of contract is that consumer fraud involves an element of deception, an unconscionable business practice, or a violation of a consumer protection regulation that has been incorporated into the Consumer Fraud Act. While a breach of contract is any breach of an enforceable promise, whether or not it’s deliberate, whether or not there’s an intent to deceive, and whether or not it involves any type of consumer protection regulation. The other difference between consumer fraud cases and breach of contract cases is the type of damages that you can recover. In a consumer fraud case, the type of damages you’re able to recover is limited to out-of-pocket measurable economic loss. In other words, dollar amounts that you can prove. That dollar amount can be tripled and you can recover your attorney’s fees in a breach of contract. Case damages are not automatically tripled, and you don’t automatically get attorney’s fees, but the type of damages you can recover is not always limited to pure economic loss.
Do You Need Proof for a Consumer Fraud Claim in New Jersey?
When you’re a plaintiff in a consumer fraud case, you have the burden of proof. The standard of proof is more likely than not, or more than a 50% likelihood that it’s true. It’s unlike a criminal case where the state would need to prove it beyond reasonable doubt. Sworn statements before the court are evidence, but almost every consumer fraud case does have some type of evidence beyond testimony. These claims usually involve an exchange of money, so there will be some type of banking record. These cases often involve business contracts, the sale of a good, the sale of services, and all have evidence. If you’ve been sold faulty goods, take pictures and bring them to court. With an improper repair of your car, you can have a mechanic take a look, and there’ll be pictures, repair records, and things like that. If you think you’re a victim of consumer fraud, it’s important to document everything you can.
Can You Recover Attorney's Fees in a New Jersey Consumer Fraud Case?
In New Jersey, if you’re a victim of consumer fraud, the Consumer Fraud Act permits the recovery of attorney’s fees. So, if you win the case, the other side has to pay your attorney fees. Additionally, the Consumer Fraud Act allows for the recovery of triple damages, and the other side pays your attorney’s fees too. Attorney’s fees are calculated most often on an hourly basis, but sometimes judges will allow an attorney fee to be measured as one-third of the total recovered.
If You Signed a Contract, Can You Claim Consumer Fraud in New Jersey?
If you’re a victim of consumer fraud, you can still bring a consumer fraud case. The contract itself may be written in a way that violates the New Jersey Consumer Fraud Act, as it promised one thing and the person who defrauded you delivered a different thing. Just because there’s a contract in play doesn’t prevent you from suing somebody for consumer fraud violations. Again, the contract itself may be evidence of consumer fraud.
How Long Does a New Jersey Consumer Fraud Case Take?
How long does a consumer fraud case usually take? It depends upon many factors. Generally speaking, they’ll take a few years to reach a settlement and longer if the case goes to trial. However, there are situations where somebody wants to settle a case upfront. Then there are situations where the case is dragged out for years, maybe over three years, before anything is fully resolved. But on average it’s around two years if the case goes into litigation.