New Jersey Acting Attorney General Jennifer Davenport and the Division of Consumer Affairs issued general guidance warning sellers against engaging in price gouging during a declared state of emergency ahead of a major winter storm. The guidance cites New Jersey’s price gouging law, which prohibits price increases exceeding 10% of pre-emergency prices for necessary goods and services during the emergency and 30 days after its termination. Violations carry civil penalties up to $10,000 for first offenses and $20,000 for subsequent offenses, with each individual sale counted as a separate violation.
This enforcement action pertains to price gouging, not privacy violations, so no privacy-specific contract clauses require review. In-house teams should instead review pricing and force majeure clauses in vendor and customer agreements to ensure compliance with New Jersey’s price gouging statute. Key clauses to check include price adjustment limits during states of emergency, prohibitions on excessive price increases for necessary goods, and requirements for vendors to certify compliance with consumer protection laws. Employee agreements are not implicated in this action.
Entity
N/A (General Warning to New Jersey Sellers)
Industry
OtherOfficial Press Release
https://www.njoag.gov/acting-attorney-general-davenport-warns-new-jersey-sellers-against-price-gouging-as-governor-sherrill-declares-state-of-emergency-ahead-of-major-winter-storm/
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"sellers"
"New Jersey’s price gouging law (N.J.S.A. 56:8-107 et seq.)"
"Acting Attorney General Jennifer Davenport and the Division of Consumer Affairs (“Division”) are warning sellers that price gouging New Jersey’s consumers during the declared state of emergency will not be tolerated."
"Price-gouging violations are punishable by civil penalties of up to $10,000 for the first offense and $20,000 for the second and subsequent offenses."
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