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Bill

A 886

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

2026-2027 Regular Session Introduced by Carol Murphy and 1 co-sponsor

The bill raises the bar for CFA claims by requiring a three-part proof of actual damages and limits attorney fees, reducing frivolous or technical lawsuits.

Introduced, Referred to Assembly Consumer Affairs Committee
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Bill Summary · A 886

Summary of New Jersey Assembly Bill A-886 (Session 222)

Purpose and Intent

A-886 seeks to reform how causes of action under the New Jersey Consumer Fraud Act (CFA) are pled and proven, and to limit attorney’s fees awarded in CFA cases. The sponsor describes the bill as providing greater protections for businesses by ensuring plaintiffs show actual harm and controlling litigation costs, particularly addressing lawsuits for technical CFA violations where no fraud occurred.

Key Provisions

  • Standards to plead a CFA claim (Section 7, amended P.L.1971, c.247 / C.56:8-19):
    • A person who suffers ascertainable loss of money or property due to a method, act, or practice declared unlawful under CFA or related consumer protection statute may file suit (reaffirms existing CFA action rights).
    • To recover damages, a plaintiff must prove three elements:
    • The plaintiff acted as a reasonable consumer would under the circumstances.
    • The challenged method, act, or practice would cause a reasonable person to act similarly to the plaintiff in incurring damages.
    • The plaintiff suffered actual damages supported by definitive and objective evidence enabling loss calculation with reasonable certainty.
    • A court may dismiss the claim as a matter of law if the plaintiff fails to show that the unlawful conduct would mislead a reasonable consumer.
  • Attorneys’ fees and costs (Section 7, continued):
    • In CFA actions, the court must award threefold (treble) damages to the plaintiff, in addition to reasonable attorneys’ fees, filing fees, and costs of suit.
    • If attorneys’ fees are awarded, they must bear a reasonable relationship to the monetary amount of the judgment.
    • When the judgment includes equitable relief (not monetary damages), attorneys’ fees should be based on time reasonably expended.
  • Effective date and retroactivity (Section 2):
    • The act takes effect immediately.
    • It applies retroactively to all actions and proceedings that have accrued, are pending, or filed on or before the date of enactment.

Who is Affected

  • Potential CFA plaintiffs (consumers): Must meet the clarified three-part standard to recover damages.
  • Defendants/Businesses: Potentially benefit from higher thresholds for CFA claims and more predictable outcomes due to dismissal provisions and controlled attorney’s fees.
  • Courts: Must apply stricter pleading standards and calculate treble damages alongside fees, with fee awards tied to the judgment amount or time expended for equitable relief.
  • Attorney’s Fee Structures: Fees in CFA cases would be limited to be reasonable relative to the judgment (or reasonable time expended for equitable relief).

Procedural and Timeline Aspects

  • Introduction and committee path: Introduced January 13, 2026; referred to Assembly Committee on Consumer Affairs.
  • Retroactivity: The bill’s retroactive application means it could affect ongoing or pending CFA actions as of enactment.
  • Immediate effect: The act would take effect upon enactment.

Practical Impact

  • Potential reduction in CFA lawsuits lacking actual consumer harm or clear evidence of damages.
  • Increased evidence standards for damages (objective, definitive evidence with reasonable certainty).
  • More predictable litigation costs for CFA cases due to fee-borrowing provisions.
  • Businesses may face fewer frivolous or technically-based CFA actions, while consumers still retain treble damages and access to relief when genuine harm occurred.

Compiled from official sources — confirm details with the bill’s official record.

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