New Jersey Clamps Down on Halloween Pop-Up Store Fraud with Preemptive Inspections

As Halloween nears, New Jersey's Division of Consumer Affairs ensures that seasonal pop-up stores meet legal standards to protect consumers.

With Halloween fast approaching and consumer spending expected to hit record highs, New Jersey's Division of Consumer Affairs has launched an aggressive campaign to inspect Halloween-themed pop-up stores across the state. This initiative aims to safeguard consumers from potential fraud and deception at these temporary retail outlets, which pop up ahead of the season's festivities and disappear shortly after.

Halloween is a major commercial event, second only to Christmas, with spending projected to reach $11.6 billion this year, according to the National Retail Federation. A significant portion of this expenditure occurs at pop-up stores, making them critical focal points for regulatory oversight.

“The arrival of Halloween pop-up stores and other temporary, holiday-themed shops are a source of excitement and anticipation for New Jersey shoppers, but when it comes to consumer protection laws, there’s nothing novel about them,” said Attorney General Platkin. “Just as we do with traditional retailers, we expect pop-up stores to abide by the laws requiring fairness and transparency in our marketplace. And just as we do with traditional retailers, we will work proactively to ensure they do.”

Starting September 20, 2024, the Office of Consumer Protection (OCP) and the Office of Weights and Measures (OWM) began comprehensive inspections. These teams are checking that all merchandise is clearly priced, return and refund policies are visible, and credit card surcharge fees are transparent, aligning with New Jersey's Consumer Fraud Act. Additionally, OWM inspectors are ensuring that prices displayed on shelves correspond accurately with those at the register, as mandated by the state’s Weights and Measures Act.

The results of the inspections, conducted over two weeks, were encouraging. While OCP investigators found no violations of the Consumer Fraud Act, OWM inspectors identified only two pricing discrepancies among more than 1,400 items checked, resulting in warnings rather than penalties.

“We invite consumers to shop with confidence this Halloween season knowing we’re looking out for their financial interests,” said Cari Fais, Acting Director of the Division of Consumer Affairs. “We also urge shoppers to keep in mind the temporary nature of pop-up stores. Because these stores come and go in a flash, the window to return items, seek refunds, or conduct other in-store transactions can close very quickly.”

To help consumers navigate their Halloween shopping and avoid potential pitfalls, the Division offers several tips:

• Inquire how long the store will occupy the building and ensure there's a way to contact the store after it closes, such as through a website or alternative address.
• Clarify details on return policies, including the types of merchandise eligible for returns, the acceptability of returns post-October 31, and whether refunds are provided as cash back or store credit.
• Try on costumes before purchase to confirm they match the packaging label, and always save receipts.
• Preferably shop at stores with a reliable history of returning to the area each year.

This proactive approach by the Division of Consumer Affairs underscores New Jersey's commitment to consumer protection, ensuring that the thrill of Halloween shopping remains free from the tricks of retail malpractice.