Assembly Panel to Consider Bill Regulating Rebate Marketing This Morning
By Jon Whiten • May 5th, 2010 • Category: Blog, News, Politics
This morning in Trenton, the Assembly Consumer Affairs Committee will consider a consumer protection bill sponsored by Hudson County Assemblyman Vincent Prieto, and co-sponsored by local Assembly members Joan Quigley and Ruben Ramos.
The legislation, essentially a truth-in-advertising measure, would forbid retailers from advertising a product’s price after a manufacturer’s rebate unless the amount of the rebate is provided to the consumer by the retailer at the time of purchase.
The law would be enforceable under the Consumer Fraud Act, and punishable by a penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense.
Rebates have been criticized by consumer advocates as having onerous rules that aim to keep consumer participation low; various experts have said that anywhere between 40 and 70 percent of all rebates are never redeemed.
As criticism of this type of marketing has grown, so has regulatory scrutiny. If New Jersey were to approve this bill, it would be the come the third state in the nation, following Connecticut and Rhode Island, to forbid this practice.
Photo: Brandie
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Jon Whiten is the founding editor of the Jersey City Independent; he now works for a public-policy nonprofit in Trenton.
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