CONSUMER ELECTRONIC LEMON LAW ADVANCES
Would Regulate Warranties, Extended Warranties, Service Contracts for Electronic Devices

(TRENTON) - The Assembly Consumer Affairs Committee today released legislation Assembly Members Nilsa Cruz-Perez, Paul Moriarty, Jim Whelan, and Michael Panter sponsored to extend the consumer protections of the state's stringent automotive lemon law to consumer-electronic products like plasma TVs and home entertainment systems.

"Many families spend as much of their incomes on electronic products as they do on a car," said Assemblywoman Cruz-Perez (D-Camden), chair of the Assembly Consumer Affairs Committee. "Given the escalating investments people are making in electronic products, shouldn't the same Lemon Law protections be extended to safeguard these consumers?"

"The Consumer Electronics Warranty Lemon Law" (A-3978) would mirror many of the protections already afforded to automobile purchasers under the state's Automotive Lemon Law.

Electronics devices as defined by the measure include devices containing technology having electrical, digital, magnetic, wireless, 11 optical, or electromagnetic capabilities which include common electronics such as home stereos, TVs, ipods, computers, and similar devices.

Under the measure, the following conditions must be met for an electronics product to qualify as a lemon:

· Any electronic device which could not be repaired within three attempts would require a replacement of equal value and condition.

· Defective items would require a full refund of the total purchase price;

· Stores that advertise in-home service for a electronics must provide such service and a serviceman within 72 hours of receipt of the service request;

· The warranty holder and a retail representative must certify the condition of an item, in writing, before it is dropped off or mailed away for repair;

· A warranty is still valid if a repair costs exceeds the original price and if there is a slight cosmetic defect that occurs with regular use;

· Extended warranties and service contracts must run consecutively with any manufacturer's warranty and cannot void or diminish any coverage provided by the manufacturer.

"Electronics warranties and service contracts should be a source of reassurance for consumers, not a headache," said Assemblyman Moriarty (D-Gloucester). "Extended warranties should not become simply an added charge, but an iron-clad agreement that guarantees a purchase."

"By extending lemon law protections to consumer electronics, manufactures of these products will be under increased pressure to ensure maximum quality control," said Assemblyman Whelan (D-Atlantic). "Too many consumers are getting stuck with foreign-made electronic devices that are defective and unrepairable."

Violations of the measure would be punishable under New Jersey's Consumer Fraud Act. First offenders would be fined up to $10,000. Subsequent violations would be subject to fines up to $20,000. Violators also could be subjected to injunctive relief, triple damages, and restitution.

"We cannot continue to allow some disingenuous electronics retailers and manufacturers to take advantage of New Jersey's consumers," said Assemblyman Panter (D-Monmouth/Mercer). "Warranties and service contracts must be upheld, and violators should face harsh penalties for deceptive business practices."

The measure was released from the Assembly Consumer Affairs Committee by a vote of 5-0. It now heads to the Assembly Speaker, who decides if and when to post it for a floor vote.

--30--