New Jersey Pursues CE 'Lemon Law'

Bill Subjecting Retailers to $10,000 Fines Heads to Floor Vote

New Jersey Assembly members introduced a bill to extend the state's stringent automotive lemon law to consumer electronics products this week, a move that could see retailers face fines up to $10,000 for failing to follow warranty and repair guidelines for items such as plasma TVs and home entertainment systems.

"We cannot continue to allow some disingenuous electronics retailers and manufacturers to take advantage of New Jersey's consumers," says Assemblyman Michael Panter (D-Monmouth/Mercer), a co-sponsor of the bill. "Warranties and service contracts must be upheld, and violators should face harsh penalties for deceptive business practices."

The Consumer Electronics Warranty Lemon Law (A-3978) would require the following conditions be met for an electronics product to qualify as a lemon:

• Any electronic device which could not be repaired within three attempts would require a replacement of equal value and condition.
• Defective items would require a full refund of the total purchase price.
• Stores that advertise in-home service for a electronics must provide such service and a serviceman within 72 hours of receipt of the service request.
• The warranty holder and a retail representative must certify the condition of an item, in writing, before it is dropped off or mailed away for repair.
• A warranty is still valid if a repair costs exceeds the original price and if there is a slight cosmetic defect that occurs with regular use.
• Extended warranties and service contracts must run consecutively with any manufacturer's warranty and cannot void or diminish any coverage provided by the manufacturer.

Violations of the measure would be punishable under New Jersey's Consumer Fraud Act. First offenders would be fined up to $10,000, and subsequent violations would be subject to fines up to $20,000. Violators also could be subjected to injunctive relief, triple damages and restitution.

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Comments

[Sea Isle City Guy]

I'm all for lemon laws being in place, as long as they are working to help protect the consumer. A plasma screen TV is no different than a small car, and a lemon law helps protect the buyer (besides, some electronics like plasma tvs are actually more expensive than cars these days.)