Member Perspective: Do You Advertise Online? Consumer Fraud Act Applies to Online Advertising

June 1, 2011

Publication
The Business Edge; A Publication of the Morris County Chamber of Commerce

Michael T. Hensley
Stephen R. Knox

 

Do you advertise online? The New Jersey Supreme Court has issued a reminder to businesses that online advertisements are subject to the New Jersey Consumer Fraud Act (“CFA”).

In Real v. Radir Wheels, Inc., the Court held that the CFA applied to a transaction in which an out-of-state consumer purchased a used automobile from an in-state seller who advertised it on the Internet. Given the CFA's potential for awards of treble damages and attorneys' fees for violations of the act, all businesses in New Jersey should take well-informed precautions when advertising online.

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