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Four NJ Businesses Fined for Violating Consumer Fraud Act on Cash and Credit Card Acceptance
Hidden Grounds, Hoboken | Hidden-Grounds, New-Brunswick | Ronnie’s Hot Bagels | Seymours Bakery and Deli | Skyviews of America, LLC.
New Jersey Attorney General Matthew J. Platkin has issued violation notices to four businesses throughout the state for failing to accept cash or for charging a credit card surcharge without properly notifying consumers. The move comes after the Division of Consumer Affairs' Office of Consumer Protection received numerous complaints from residents regarding businesses that either charged consumers fees for using credit or debit cards without disclosure or did not accept cash as payment.
According to the New Jersey Consumer Fraud Act, merchants are required to give consumers the option to pay cash and must disclose the total selling price, including any surcharges for using credit cards, debit cards, or pre-paid cards. Businesses are allowed to charge card surcharges but must disclose the fees and the amount to consumers before the customer is charged.
Skyviews of America, LLC, which operates the Dream Wheel at the American Dream Mall in East Rutherford, was issued a Notice of Violation for not accepting cash and was fined $1,000. Hidden Grounds Coffee was also issued two NOVs for not accepting cash and was fined $2,000. The business has agreed to accept cash as payment and distribute a summary of the Consent Order to management.
Ronnie’s Hot Bagels in Hillsdale and Seymour’s Café in Clifton received NOVs for not disclosing card surcharges and were fined $500 each. Each instance of failing to notify a consumer of a card surcharge or charging more for merchandise than the displayed price is a violation of New Jersey’s Consumer Fraud Act, with violators facing a maximum penalty of $10,000 for the first violation and $20,000 for each subsequent violation. Failing to accept cash as payment is subject to a maximum penalty of $2,500 for the first violation.
How Consumers Can Protect Their Pockets:
- Check the receipt to make sure the price charged matches the advertised or posted price of an item (plus tax, if applicable).
- Look for the merchant to display the full price (excluding tax) using each method of payment accepted. For example, the merchant should display the full price if the customer pays in cash and display the amount that will be charged if a card surcharge applies, which can be stated as a percentage.
- Be wary of card surcharges that exceed the actual incremental cost of the processing fee, which is typically around 1-5%.
Consumers who believe that a business is in violation of the New Jersey Consumer Fraud Act, are encouraged to file an online complaint. Consumers can also call 1-800-242-5846 to receive a complaint form by mail.
