The Assembly has passed two bills related to recalled motor vehicles that the New Jersey Civil Justice Institute warned the legislature to amend before advancing. A1892 would prohibit rental companies from renting, leasing or selling unrepaired motor vehicles which are the subject of a safety recall, while A3725 would prohibit used car dealers from selling motor vehicles which are the subject of a safety recall to consumers without notifying them of the recall.


Without taking a position on the concept underlying both bills, NJCJI urged the legislature to take enforcement of the legislation out of the Consumer Fraud Act, and instead rely only on the statutory penalties each bill provides. A statutory penalty allows individual consumers to recover quickly and efficiently without needing to hire an attorney, while the CFA incentivizes litigation.


A1892 passed the Assembly on a vote of 49-20-0. A3725 passed 68-0-2.