United States: With Some Progress In 2017, Where Does TCCWNA Head In 2018?

Brett D. Carroll and Stephen Hall are attorneys in Holland & Knight's Boston office


  • State and federal courts in New Jersey continue to review carefully how far the Truth-in-Consumer Contract Warranty and Notice Act (TCCWNA) should be extrapolated in order to sustain claims with no adverse impact or affect.
  • The New Jersey Supreme Court is now evaluating several critical TCCWNA legal issues which will likely impact these claims materially going forward.
  • Retailers must continue to analyze consumer communications (notices, warranties, contracts, terms and conditions, and the like), including their entire website content, to ensure that they are compliant with existing TCCWNA law.

In recent years, the New Jersey Truth-in-Consumer Contract Warranty and Notice Act (TCCWNA), N.J.S.A. 56:12-14 et seq., has been employed by plaintiffs in putative class actions to avoid the ascertainable loss and causation requirements attached to the New Jersey Consumer Fraud Act in order to recover significant windfall claims from local, regional, and national retailers in matters where the consumer has not been damaged much less adversely impacted or affected. Retailers, however, have fought back. The state and federal courts in New Jersey continue to review carefully how far TCCWNA should be extrapolated in order to sustain claims with no adverse impact or affect. And, the New Jersey Supreme Court is now evaluating several critical TCCWNA legal issues which will likely impact these claims materially going forward.

Favorable Trends Limiting the Scope of TCCWNA Continued to Emerge in 2016 and 2017

By late 2015, New Jersey federal courts had commenced a more critical review of TCCWNA claims whereby consumers were required to plead more in order to sustain a claim. State courts, however, remained less critical of plaintiff's allegations in the TCCWNA context. In 2016 and 2017, federal courts continued their aggressive review of TCCWNA claims such that more and more TCCWNA claims, where no adverse impact was sustained by the consumer, were dismissed. And, an emerging trend occurred in state courts, which equally reviewed TCCWNA claims with a far more critical eye resulting in more dismissals at the state level.

In January 2016, the New Jersey Superior Court, Law Division, continued a trend of limiting the scope of TCCWNA when consumers failed to establish evidence of deception. In early January, the Court stated that the purpose of TCCWNA is to prevent deceptive practices in consumer contracts by prohibiting the use of illegal terms or warranties.1 The Court held that provisions containing flexible language such as "unless prohibited by law" do not deceive or create confusion as to the rights and responsibilities of the consumer.2 In late January, the Court further clarified that consumers must set forth some proof that the provisions of a consumer contract may mislead the consumer.3 The Court found that the key to determining whether TCCWNA applies is the presence of deception or the lack thereof. The Court held that "facts demonstrating potential for the consumer to be misled or deceived must be in place for the TCCWNA to be relevant."

In March 2016, the Law Division further limited the scope of TCCWNA by requiring a consumer to demonstrate that contractual provisions at issue violated a clearly established right.4 The Court held that the existence of limiting phrases such as "where permitted by law" or "unless prohibited by law" do not constitute proof of intent to deceive the consumer or obscure the consumer's rights, responsibilities or remedies, which is necessary to sustain a TCCWNA claim.

The U.S. District Court for the District of New Jersey, consistent with earlier opinions from the Court, continued to limit the scope of TCCWNA by requiring that a plaintiff be an "aggrieved" consumer in order to sustain a claim.5 The Court dismissed a TCCWNA claim because the consumer failed to allege that he utilized the vendor's services at issue, and thus, he was not considered an aggrieved consumer under TCCWNA.

In 2017, the District Court further limited the scope of TCCWNA where the consumer purchased a product from a vendor's website but did not assent to alleged violative terms of use displayed on the website.6 The District Court also held that the consumer had not been harmed by the terms displayed on the vendor's website, and thus, the plaintiff was not an aggrieved consumer under TCCWNA, which is necessary to sustain a claim.

New Jersey Supreme Court Provides Limits on TCCWNA's Reach in Dugan v. TGI Friday's, Inc.7

In October 2017, the New Jersey Supreme Court handed down a decision which further confirmed two requirements for consumers seeking relief under TCCWNA. In Dugan, the consumers brought class action claims to recover damages under TCCWNA for alleged unlawful practices related to the disclosure of prices for beverages. Specifically, the consumers alleged that the defendant restaurants offered menus that failed to list the price of the beverages and that the defendant restaurants charged the consumers different prices for the same type, volume and brand of beverage. The Court, in denying class certification, held that a consumer seeking a remedy under TCCWNA must be an "aggrieved consumer" and the defendant must violate a "clearly established legal right."

The Court held that the "aggrieved consumer" requirement mandated that the consumer receive the menus in question. This is significant because it further enforced the requirement that a defendant must provide the consumer with a writing before TCCWNA can apply. Consumers could not point merely to the existence of an allegedly violative writing. Instead, the consumer must affirmatively set forth facts establishing that the defendant presented the writing to the consumer seeking relief to satisfy the "aggrieved consumer" requirement.

The Court also took a hard look at whether the defendant restaurants violated a "clearly established legal right" and concluded that no New Jersey law that prohibited restaurants from offering food or beverages without listing the prices of such items in their menus. The Court's holding is significant because it plainly limits the reach of TCCWNA to consumer rights and vendor responsibilities that have been clearly established, either by prior case law or enforcement actions taken by the Attorney General.

In recognition of the grossly unfair impacts TCCWNA claims could pose for retailers, the New Jersey Supreme Court stated that "[n]othing in the legislative history of the TCCWNA, which focuses on sellers' inclusion of legally invalid or unenforceable provisions in consumer contracts, suggests that when the Legislature enacted the statute, it intended to impose billion-dollar penalties..." This comment and the Dugan decision in general strengthens a retailer's ability to defend against claims where no adverse impact is felt.

Critical New Jersey Supreme Court Ruling on TCCWNA Is Pending

In February 2016, the U.S. District Court for the District of New Jersey dismissed two separate purported class actions involving alleged TCCWNA violations against Bob's Discount Furniture and Select Comfort.8 The District Court confirmed that, in order to sustain a TCCWNA claim, a prospective plaintiff must be "aggrieved" such that he or she has suffered the "effects of a violation" of the TCCWNA, or that the plaintiff's "personal, pecuniary, or property rights have been adversely affected by another person's actions." The District Court rejected the plaintiffs' arguments that technical violations, without any aggrievement, can result in automatic liability. The plaintiffs in both actions appealed to the U.S. Court of Appeals for the Third Circuit, where the matters were fully briefed.

In late 2016, the Third Circuit certified two unresolved questions of law concerning TCCWNA to the New Jersey Supreme Court. And, on April 4, 2017, the New Jersey Supreme Court granted the petition for certification of the following questions: 1) "[i]s a consumer who receives a contract that does not comply with the Delivery of Household Furniture and Furnishing Regulation . . . but has not suffered any adverse consequences from the noncompliance, an "aggrieved consumer" under [TCCWNA]?" and 2) "[d]oes a violation of the Furniture Delivery Regulations alone constitute a violation of a clearly established right or responsibility of the seller under TCCWNA and thus provide a basis for relief under TCCWNA?"

Briefing finished in mid-2017 with the New Jersey Supreme Court hearing nearly three hours of oral argument in early November.9 The appellee/retailers argued, among other arguments, that: 1) TCCWNA's express language requires that a plaintiff be "aggrieved," and 2) "aggrieved" means more than just incurring an alleged facial violation of the Act, rather, the consumer must be adversely affected, impacted and/or deceived. Indeed, the retailers asked the New Jersey Supreme Court to answer both certified questions in the negative because TCCWNA was simply not designed to compensate nonaggrieved consumers based on alleged hyper-technical violations. As the Court concluded in Dugan, TCCWNA should not be employed to fuel the recent spate of class action claims, where consumers seek to extract tens of millions of dollars (if not more) from retailers, based upon technical "gotcha" violations without any allegations of adverse effect or impact.

Where TCCWNA Is Headed in 2018

It is believed that more than 25 TCCWNA cases in both state and federal courts are currently stayed or in "inactive status" as a result of the New Jersey Supreme Court's review of the certified questions. The impact of the New Jersey Supreme Court's decision is obvious. The result will not only greatly inform the cases currently on hold, it will have a far broader impact to confirm how far TCCWNA can be stretched to embolden class claims without any real impact felt by the consumers or, more importantly, to limit TCCWNA's intended reach to claims where actual adverse effect, impact or deception occurs.

Now aware of the unintended purposes that TCCWNA has been used by aggressive class counsel, where no impact has been suffered by consumers, the New Jersey Legislature is taking a second look at the statute. This effort confirms a recognition of the unintended consequences for which TCCWNA has been employed – as a weapon to otherwise hurt retailers who act in good faith and work diligently to comply with the law. To this end, the Legislature is considering an amendment that would disallow class certification of TCCWNA claims where there is no ascertainable loss incurred. This requirement is consistent with other consumer statutes in New Jersey, including the Consumer Fraud Act and Plain Language Act that place limitations on a consumer's recovery.10 Further, the proposed amendment contemplates that the consumer not only be "aggrieved" but that, if aggrieved, and, if the loss is less than $250, the consumer must first request reimbursement from the seller in writing and wait 35 days before a TCCWNA action is allowed.

Action Steps While Awaiting the Court's Decision

Retailers must continue to analyze consumer communications (notices, warranties, contracts, terms and conditions, and the like), including their entire website content, to ensure that they are compliant with existing TCCWNA law. To the extent that a demand is received, counsel should be consulted to ensure the best approach is taken to defend these expensive claims (including whether to respond in the first place given that several plaintiff's firms send hundreds of demands at a time). In addition, consumers can lend their vocal support to ongoing legislative efforts in New Jersey to incorporate critical amendments to TCCWNA to help curtail the overzealous and inappropriate expansion of TCCWNA. Holland & Knight has direct experience representing retailers in both state and federal courts in New Jersey, and has provided compliance assistance for several national clients regarding their consumer-facing communications and websites.


1 Greenberg v. Mahwah Sales & Serv., Inc., No. BER-L-6105-15, 2016 WL 193485 at *3 (N.J. Super L. Jan. 8, 2016).

2 Id. at *7

3 Wright v. Bank of America, N.A., No. L-433-15, 2016 WL 631910 at *7 (N.J. Super. L. Jan. 29, 2016).

4 Walters v. Dream Cars Nat'l, LLC, No. BER-L-9571-14, 2016 WL 890783 at *6 (N.J. Super. L. Mar. 7, 2016).

5 Friest v. Luxiottica Group S.p.A., No. 2:16-cv-03327-SDW-LDW, 2016 WL 7668453 at *8 (D.N.J. Dec. 16, 2016).

6 Hite v. Lush Internet, Inc., 244 F.Supp.3d 444, 455 (D.N.J. 2017).

7 171 A.3d 620 (2017)

8  Wenger v. Bob's Discount Furniture LLC, No. 3:14-CV-07707-FLW-LHG (D.N.J. Feb. 29, 2016); Spade v. Select Comfort, No. 3:15-CV-01826 (D.N.J. Feb. 29, 2016).

9 Amicus briefs in favor of retailers were filed by the New Jersey Business & Industry Association, Tailor Brands Inc., the New Jersey Civil Justice Institute, the Commerce and Industry Association of New Jersey, the Retail Litigation Center Inc. and the New Jersey Retail Merchants Association. Amicus briefs in favor of the plaintiffs were filed by the Consumers League of New Jersey and the New Jersey Association for Justice. Holland & Knight argued on behalf of one of the appellee retailers.

10 See N.J. Stat. Ann. 56:8-1 et seq. (Consumer Fraud Act provides that consumer recovery is not available unless an "ascertainable loss" is established); see also N.J. State. Ann. 56:12-1 et seq. (Plain Language Act) (class recovery for punitive damages is limited to $10,000).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions