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The Assembly Consumer Affairs Committee on Thursday approved a consumer protection bill that would tighten regulations on rebate marketing in New Jersey.

The legislation, sponsored by Hudson County Assemblyman Vincent Prieto and co-sponsored by local Assembly members Joan Quigley and Ruben Ramos, 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 bill now heads to the full Assembly, where a vote has not yet been scheduled.

“This bill would not prevent manufacturers from offering rebates to New Jersey consumers, but would only prohibit stores from deceptively passing off a net price to unwitting customers,” Prieto says in a statement. “It’s a consumer protection measure that makes common sense.”

The committee revised the bill slightly, adding an amendment that would allow retailers to continue advertising rebates if the actual selling price of the merchandise is disclosed in the same font and size as the net price, and if the ad contains “clear and conspicuous notice” that a mail-in rebate is required.

The panel’s lone no vote on the bill came from Republican Assemblyman Domenick DiCicco, who says in the minority statement that the legislation would “harm the business community” and add “one more burden” to small businesses.

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.

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