Benson and Moriarty Consumer Protection Measure Continues Advancing

Bill Would Help Prevent Consumers from Getting Roped into Endless Contracts

(Trenton) - A consumer protection measure sponsored by Assemblymen Dan Benson and Paul Moriarty was approved 69-5-2 Monday by the Assembly, moving New Jersey one step closer to requiring notification to customers when a contract is to be automatically renewed.

"So many highly-used services out there today include automatic renewal clauses in their contracts," said Benson (D-Mercer/Middlesex). "In an era of paperless billing and automatic charges to credit cards or bank accounts, consumers often get perpetually roped into extended renewal, this bill will give consumers the opportunity to make more informed choices for themselves."

This bill (A-3770) establishes notification standards regarding service contracts for the performance of services, maintenance or repair over a fixed period of time in connection with real property.

"Sometimes contracts are entered into a year, or even two years, before the automatic renewal clause kicks in," said Moriarty. "This bill will protect consumers by ensuring that they have the opportunity to cancel any unwanted service prior to renewal of an additional term."

This bill now goes to the Senate.