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New Jersey bill limits consumer fraud lawsuits and caps attorney fees

Original title: Establishes certain requirements for asserting cause of action under consumer fraud act and limits awarding of attorneys' fees.

Last action · January 13, 2026: Introduced, Referred to Assembly Consumer Affairs CommitteeSponsors: Carol Murphy and 1 other

Companion · S 2561same policy, Senate version
Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

New Jersey bill A886 requires consumers suing under the state fraud act to prove reasonable behavior and objective damages, while restricting attorney fee awards to a reasonable relationship with the monetary judgment.

Why it matters

Changes the legal threshold for filing consumer fraud lawsuits in New Jersey, directly impacting consumers seeking damages and the calculation of legal fees awarded in court.

Background
  • The New Jersey Consumer Fraud Act governs protections against deceptive commercial practices and provides avenues for private civil enforcement. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Consumers

Consumers filing lawsuits under the consumer fraud act must meet new evidentiary burdens regarding their own reasonableness and objective financial damages.

Directly affected

Businesses

Businesses face new legal thresholds that allow courts to dismiss certain consumer fraud claims as a matter of law.

Directly affected

Attorneys

Attorneys representing plaintiffs in consumer fraud cases are subject to new limits that tie their fee awards to the monetary judgment or time expended.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What does a consumer need to prove under the new bill requirements?
A consumer must prove they acted reasonably, that the unlawful practice would mislead a reasonable person, and that they suffered actual damages calculated with a reasonable degree of certainty.
How are attorney fees determined if the bill becomes law?
Attorney fees must bear a reasonable relationship to the monetary amount of the judgment, or be based on time reasonably expended if the judgment grants .

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Jan 13, 2026HouseIntroduced
    Introduced, Referred to Assembly Consumer Affairs Committee

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

Carol A. Murphy, General Assembly, Gerry Scharfenberger
PersonCarol A. Murphy“Assemblywoman, District 7”Map →
OrganizationGeneral Assembly“New Jersey state legislature lower house”Map →
PersonGerry Scharfenberger“Assemblyman, District 13”Map →

Sources

Open source document

njleg.state.nj.us

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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