New Jersey Consumer Fraud & Odometer Fraud Frequently Asked Questions

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• What is the New Jersey Consumer Fraud Act?
• What is considered "fraud" under the Consumer Fraud Act?
• What transactions are covered by the Consumer Fraud Act?
• What types of sales are excluded from the Consumer Fraud Act?
• Who can recover money damages under the New Jersey Consumer Fraud Act?
• What can I recover if I have a valid Consumer Fraud Act claim?
• What is odometer fraud?
• What are some of the Federal Odometer Law requirements?
• What vehicles are exempt from the Federal Odometer Law?
• What are the damages odometer fraud victims might recover?
• If I financed the vehicle's purchase, can I stop making payments?
• What if the dealer or manufacturer says I don't have a case?
• What do I do to find out if I have a case?

What is the New Jersey Consumer Fraud Act?

The New Jersey Consumer Fraud Act was intended as a response to public harm resulting from deception, misrepresentation and unconscionable practices engaged in by professional sellers seeking mass distribution of many types of consumer goods. The Consumer Fraud Act provides individuals and businesses with the right to file a lawsuit against those that cause actual harm by using deception, misrepresentation and unconscionable practices when selling certain goods or services. The New Jersey Consumer Fraud Act provides consumers with a greater level of protection than do some other remedies for consumer fraud. Under the New Jersey Consumer Fraud Act, the burden of proof is often easier to meet and potential damages are greater, as the New Jersey Consumer Fraud Act allows certain defrauded and injured individuals and businesses to recover 3 times the amount of damages plus court costs and attorney's fees.

What is considered "fraud" under the New Jersey Consumer Fraud Act?

The act, use or employment by any person of any unconscionable commercial practice, deception, fraud, false pretense, false promise, misrepresentation, or the knowing concealment, suppression, or omission of any material fact with intent that others rely upon such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise or real estate, or with the subsequent performance of such person as aforesaid, whether or not any person has in fact been misled, deceived or damaged thereby, is declared to be an unlawful practice.

Generally speaking, the New Jersey Consumer Fraud Act creates three categories of prohibited acts:

1. Affirmative acts -- unconscionable commercial practice, deception, fraud, false pretense, false promise or misrepresentation.
2. Knowing omissions -- concealment, suppression or omission of any material fact.
3. Violations of certain sections of the Consumer Fraud Act and of regulations adopted by the New Jersey Division of Consumer Affairs.

Under the New Jersey Consumer Fraud Act, mere proof that a merchant violated a subsection of the New Jersey Consumer Fraud Act or committed a regulatory violation establishes unlawful conduct and thus, the New Jersey Consumer Fraud Act does not require separate proof of intent to evade or violate the law.

What transactions are covered by the New Jersey Consumer Fraud Act?

The New Jersey Consumer Fraud Act defines "person" to include the following: natural persons, associations, corporations and other business entities, as well as the agents, partners and officers of said entities. The New Jersey Consumer Fraud Act applies to persons without requiring that the contract be for personal, family or household purposes. Accordingly, in certain instances, the New Jersey Consumer Fraud Act applies to the sale of merchandise used in business operations. The types of “merchandise" covered by the New Jersey Consumer Fraud Act are extensive and they may include objects, wares, services or anything offered directly or indirectly to the public for sale, such as automotive sales, automotive repairs, household furniture and furnishings, mail order practices, the sale of animals, home improvement practices, home appliance repairs and service and watercraft repair. The sale of most items used by individuals and businesses (other than those used to make a profit) are covered by the New Jersey Consumer Fraud Act.  Under the New Jersey Consumer Fraud Act, a "sale" includes the following: actual sale, rental, distribution and offers or attempts to sell, rent or distribute. Under the right circumstances, a manufacturer who makes representations about its product that are intended to be conveyed to the ultimate retail buyer may be held liable for violation of the New Jersey Consumer Fraud Act.

What types of sales are excluded from the New Jersey Consumer Fraud Act?

There are limits to the types of transactions/merchandise that are covered under the New Jersey Consumer Fraud Act. Accordingly, if you think you have a New Jersey Consumer Fraud Act claim, you should promptly consult with an attorney. For example, when learned professionals (doctors, lawyers, insurance brokers, architects, accountants, etc.) are acting within the scope of their profession, they are not subject to the New Jersey Consumer Fraud Act. Further, the conduct of certain types of industries/areas that are regulated by state or federal laws other than the New Jersey Consumer Fraud Act may be excluded from the New Jersey Consumer Fraud Act. For example, in certain instances, the regulations of the Casino Control Commission or the Food and Drug Administration prevent individuals or businesses from raising the protections of the New Jersey Consumer Fraud Act. There are exceptions to these prohibitions and you must consult with an attorney to be certain that your claim is excluded under the New Jersey Consumer Fraud Act.

Who can recover money damages under the New Jersey Consumer Fraud Act?

To recover money damages under the New Jersey Consumer Fraud Act, you must prove that:

• You were the victim of an unconscionable commercial practice, deception, fraud, false pretense, false promise, misrepresentation in connection with the sale or advertisement of any merchandise or real estate or with the subsequent performance of such person; or
• You were the victim of the knowing concealment, suppression, or omission of any material fact with intent that you rely upon such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise or real estate or with the subsequent performance of such person;
• You were the victim of a violation of a section of the New Jersey Consumer Fraud Act or an administrative regulation that prohibits consumer fraud; and
• The misconduct directly caused you to lose property or money; and
• you are able to supply an estimate of your damages, calculated within a reasonable degree of certainty that proves you suffered those losses; and

What can I recover if I have a valid New Jersey Consumer Fraud Act claim?

If you are successful in proving that you are entitled to relief under the New Jersey Consumer Fraud Act, you may be entitled to receive the following:

• 3 times the amount of your damages;
• reasonable attorney's fees;
• filing fees;
• certain costs associated with your lawsuit.
• a refund of any money or the return of property of which you were defrauded.
• cancellation of any fraudulent debt or contract

Expert witness fees are not normally available under the New Jersey Consumer Fraud Act. Depending on the facts of your case, other types of relief may also be available to you under the New Jersey Consumer Fraud Act or under other New Jersey laws.

What is odometer fraud?

Odometer fraud (which is often a type of consumer fraud) generally involves someone tampering with or altering the mileage that is stated on a vehicle’s odometer – the gauge that measures how many miles that the vehicle travels whenever it is moving. Odometer fraud is usually committed to deceive a purchaser of a vehicle into believing that a vehicle has traveled fewer miles than is actually the case. To prohibit odometer fraud and to protect motor vehicle purchasers, the Federal Government passed the Motor Vehicle Cost Information Act. The Code of Federal Regulations also deals with odometer disclosure requirements. Under Federal Law, the following conduct if committed intentionally may be fraud:

• Advertising, selling, using, installing or having installed in a motor vehicle a device that causes its odometer to register the wrong mileage.
• Disconnecting, resetting, altering or having disconnected, reset or altered a motor vehicle’s odometer in order to change the actual mileage stated on the odometer.
• Operating a motor vehicle if the operator knows that its odometer is disconnected or not operating if the action is taken with the intent to defraud.
• Removing or altering a notice attached to a motor vehicle as required by the Motor Vehicle Cost Information Act, if the action is taken with the intent to defraud.
• Engaging in a conspiracy to violate the odometer repair and odometer disclosure sections of the Motor Vehicle Cost Information Act.

What are some of the Federal Odometer Law requirements?

• Anyone who repairs or replaces an odometer and it no longer registers the same mileage as before its repair or replacement, the person must adjust the odometer to the “0” mark and then place a disclosure sticker on the vehicle’s left door frame.
• Anyone transferring ownership of a motor vehicle must give the new person taking ownership written disclosure: (1) of the vehicle’s mileage and attest to the accuracy of the mileage figure; or (2) that the mileage is unknown; or (3) the mileage stated on the vehicle’s odometer is incorrect. Unless the vehicle’s certificate of title is in possession of a lienholder, this disclosure must be made on the vehicle’s certificate of title. If a lienholder has the certificate of title in its possession, the person transferring title to the motor vehicle may use a written power of attorney (if allowed by State law) to make the appropriate disclosure. In addition, the new person taking ownership of the vehicle must be given a copy of the disclosure statement.
• Anyone leasing a motor vehicle must provide an odometer disclosure statement to the lessor when the lessor transfers ownership of the vehicle.
• Motor vehicle dealers and lessors must keep odometer disclosure statements for a period of 5 years.
• Motor vehicle auction companies must keep records of buyers, sellers, odometer readings and vehicle identification numbers for vehicles that are sold through the auction companies for a period of 4 years.

What vehicles are exempt from the Federal Odometer Law?

• Vehicles with a gross weight of over 16,000 pounds or that or 10 years or older are exempt from the requirements of the Motor Vehicle Cost Information Act.
• Certain requirements of the Motor Vehicle Cost Information Act (those of subsections (b) and (c)(1)) do not apply if the State where the transfer of the vehicle occurs has in effect alternate motor vehicle mileage disclosure requirements approved by the Secretary of Transportation.

What are the damages odometer fraud victims might recover?

If a person is the victim of another’s intentional violation of the Motor Vehicle Cost Information Act, the wronged person may bring a case against the wrongdoer in the Superior Court of New Jersey. If the victim wins the lawsuit, the victim can recover money damages in the amount of 3 times their actual damages or $1,500.00 plus reasonable attorney's fees and court costs, including the fees for filing the lawsuit. There are strict time limits within which the victim must file the lawsuit.

Odometer fraud may also be a violation of other consumer protection statutes, such as the New Jersey Consumer Fraud Act. In proper cases, such as where a person proves that as a direct result of the commission of odometer fraud, they lost property or a sum of money capable of being calculated with reasonable certainty, the New Jersey Consumer Fraud Act permits the consumer to recover money damages in the amount of 3 times their actual loss plus reasonable attorney’s fees and certain costs.

What if the dealer or manufacturer says I don't have a case?

Ignore them and seek competent legal advice. Only attorneys licensed in New Jersey to practice law are permitted to give legal advice and only they are able to evaluate if you have a valid claim. Until you speak with an attorney who is knowledgeable about this area of the law, do not draw any conclusions, regardless of what you heard from non-attorneys or read on the web.

What if the dealer or manufacturer says I don't have a case?

Ignore them and seek competent legal advice. Only attorneys licensed in New Jersey to practice law are permitted to give legal advice and only they are able to evaluate if you have a valid claim. Until you speak with an attorney who is knowledgeable about this area of the law, do not draw any conclusions, regardless of what you heard from non-attorneys or read on the web.

What do I do to find out if I have a case?

Click here for a free evaluation or call 609-714-2020.