CPLA supplements New Jersey’s Consumer Fraud Act (CFA), and accordingly, violations of the CPLA are treated the same as violations of the CFA. The CPLA mandates the disclosure of certain lease terms and conditions and affords lessees certain substantive rights on default and termination of a lease. Compliance with Federal Regulation M is compliance under the CPLA, although the CPLA goes beyond the CPLA. The CPLA and N.J.A.C. 13:45A-28.8 give consumers the right to review the lease for one business day unless this right is waived. Additionally, New Jersey has been active for decades to protect consumers purchasing what the FTC refers to as “Add-ons”, providing even more effective protection than the proposed rules. Voluntary Protection Products such as extended service contracts or GAP Waiver (“VPPs”) are typically sold by F&I personnel. New Jersey started regulating the sale of “theft prevention” devices, such as Etch, in 2007 by enacting N.J.S.A. 17:18-19. The New Jersey Division of Consumer Affairs promulgated regulations, N.J.A.C. 13:45A-30.1., on June 15, 2009, regulating vehicle protection warranties such as Etch and any other warranty that promises to pay a fixed, set amount for incidental damages in the event of an occurrence. New Jersey enacted P.L. 2013, c.197 (N.J.S.A. 56:12-87 et seq.) to regulate Service Contracts. Service Contracts include motor vehicle ancillary protection products, which is a contract or agreement between a provider and a consumer for a specific duration for a provider fee or other separately stated consideration, to perform any number of services on a motor vehicle. In fact, this year, the New Jersey Legislature enacted P.L. 2022, c.91 amending the service contract law to impose several consumer protection requirements on service contract providers. Furthermore, N.J.S.A. 17:16BB-1 et seq. regulates the offering of Guaranteed Asset Protection Waivers (GAP Waivers). It mandates requirements and conditions for offering GAP waivers, obligations of the insurer, and contents of the GAP waiver agreement. New Jersey statutes offer more regulation of dealers offering VPPs and are superior to the proposed rules. These and other laws and regulations place New Jersey at the forefront of consumer protection, which is why it is unnecessary to add complicated, duplicative, and burdensome layers of compliance that will only serve to confuse consumers and lengthen the car buying process. Greyson Hannigan is NJ CAR’s Director of Legal & Regulatory Affairs. He can be reached at ghannigan@njcar.org. IF PASSED, THE PROPOSED RULE WOULD ALSO MASSIVELY EXPAND THE LIABILITY EXPOSURE FOR DEALERS RELATED TO ADVERTISING AND VEHICLE SALES AND EXPOSE DEALERS TO LARGE MONETARY FINES FROM THE FTC THAT ARE NOT AVAILABLE TODAY. 26 new jersey auto retailer
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