New Jersey Would Outlaw Contracts That Seek to Muzzle Consumers

The New Jersey State Assembly has voted 76-0 to approve a bill that would invalidate consumer contracts that require customers to waive their right to file consumer fraud complaints. It now goes to the Senate.

The bill would nullify any contract containing language that would prevent a consumer from contacting law enforcement or filing officials complaints about products and services, NJ.com reported.

“If  those consumers have no right to file a complaint with the appropriate authorities when the terms of that agreement are not met, then we have situation where we need to step up and make sure our consumers are protected," said Assemblyman Ruben J. Ramos Jr., co-sponsor of the measure.

Ramos said the recession has added a sense of urgency to the need to protect consumers against fraud.

"When companies are using contract clauses that force consumers to waive their right to file a complaint, something must be done," said the bill's other co-sponsor, Wayne P. DeAngelo. "Preventing a customer from filing a complaint undermines New Jersey's long standing tradition of consumer protection. Without such protection, the ability monitor a business' compliance with existing law is severely compromised.”