This bill amends the existing law regarding the prohibition of certain unsolicited checks, specifically addressing the penalties for violations. It establishes that sending an unsolicited check that obligates the recipient to pay a fee or enroll in a service is considered an unlawful practice. The bill specifies that a person found in violation of this provision will face a civil penalty of up to $500 for a first offense and up to $1,000 for a second offense. Additionally, it clarifies that a third violation will be treated as an unlawful practice under the New Jersey Consumer Fraud Act (CFA), with a fourth or subsequent violation classified as a subsequent offense under the CFA.

The bill also introduces new enforcement mechanisms, stating that the Superior Court will have jurisdiction over penalty enforcement proceedings. It replaces previous language that did not allow for a private cause of action against violators and outlines the potential for more severe penalties under the CFA, which can include fines of up to $10,000 for a first offense and up to $20,000 for subsequent offenses. This change aims to strengthen consumer protections against unsolicited checks and enhance the consequences for those who violate the law.