|
NEWARK
– On Wednesday, the Appellate Division
of the New Jersey Superior Court upheld
a Decision and Order of the Director of
the Division of Consumer Affairs, which
found a used car dealership had violated
the New Jersey Consumer Fraud Act by failing
to post selling prices on or near its used
vehicles.
On
April 10, 2008, as part of its Used Car
Task Force, investigators from the Division
of Consumer Affairs inspected J.D. Byrider,
also known as Johnny Popper, Inc. and Fisher’s
Fine Automobiles, located at 342 South Whitehorse
Pike in Clementon, New Jersey. Investigators
found that J.D. Byrider had no prices posted
on any of the 34 used vehicles it offered
for sale. In fact, no prices were posted
anywhere in the outdoor lot where the vehicles
were offered for sale.
J.D.
Byrider contested the Notice of Violation
by requesting a hearing. At the hearing,
J.D. Byrider argued that posting a price
list for vehicles inside its sales office
satisfied N.J.S.A. 56:8-2.5, which
requires the posting of prices either on
the merchandise or “at the point where
the merchandise is offered for sale.”
The Division of Consumer Affairs, in contrast,
argued that the language of the statute
should be interpreted to require the posting
of prices either on the vehicles or near
them.
The
Director agreed with the interpretation
advanced by the Division, finding J.D. Byrider
had violated N.J.S.A. 56:8-2.5, and
awarded $5,425 in civil penalties and reimbursement
of investigative costs and attorneys’
fees.
J.D.
Byrider appealed the Director’s Final
Decision and Order to the Appellate Division,
again arguing that posting prices inside
its sales office satisfied the requirements
of N.J.S.A. 56:8-2.5.
The
Appellate Division rejected that argument
and upheld the Director’s Final Decision
and Order.
The
Court stated: Having prices posted on vehicles
“would facilitate the desirable practice
of comparison shopping by consumers without
the need to interact with salespersons if
the consumer so wishes.”
“This
decision is a major victory for consumers,”
Attorney General Paula T. Dow said. “Consumers
need to know product pricing in order to
make informed purchasing decisions and this
ruling affirms the requirement to have the
sales price on or near any used vehicle
offered for sale.”
Many
consumers are buying used vehicles rather
than new cars and trucks because of current
economic conditions, noted Thomas R. Calcagni,
Acting Director of the Division of Consumer
Affairs.
“Prices
need to be posted where items are offered
for sale, which is where the consumer finds
them, not at the place where the buying
transaction is concluded,” Calcagni
said. “This is especially true when
someone potentially is spending thousands
of dollars on a used vehicle.”
Deputy
Attorney General Nicholas Kant of the Consumer
Fraud Prosecution Section, represented the
Division before both the Director and the
Appellate Division.
### |
