TRENTON, N.J. — Legislation that would require retailers to honor digital coupon discounts when advertised items are temporarily out of stock advanced recently after clearing the Assembly Consumer Affairs Committee.
The bill, A4297, is sponsored by Assembly members Joe Danielsen, Shanique Speight and William B. Sampson IV. It is intended to ensure consumers can still receive advertised discounts even when products promoted through digital coupons are unavailable at the time of purchase.
“Digital coupons are an increasingly common way for retailers to promote products and for families to save money. Yet, for all the advantages they offer, when the advertised items are not readily available, there are no protections currently in place for consumers to get them later at the lower price,” said Danielsen, D-Middlesex, Somerset. “If a retailer publicizes a discount, consumers should be able to rely on it. This bill would help prevent unfair practices and guarantee that shoppers get the deals they were promised.”
Under the proposed legislation, retailers would be required to issue a raincheck in the form of a written statement when a product or service advertised through a digital coupon is not in stock as advertised. The raincheck would have to remain valid for at least 60 days and allow consumers to purchase the same product, service or promotional benefit at the discounted price. The requirement would not apply to offers that clearly disclose they are valid only while supplies last.
“By guaranteeing rainchecks for digital coupons, we are helping working families secure the discounts they want at prices they can count on,” said Speight, D-Essex, Hudson. “This legislation is about reinforcing transparency and accountability while also protecting consumers from misleading promotions. During the holiday shopping season and all year round, consumers who rely on digital coupons should have peace of mind knowing that high demand seasons and limited stock will not mean lost savings for their household.”
The bill would make failure to provide a required raincheck a violation of the state Consumer Fraud Act. Penalties could include fines of up to $10,000 for a first offense and up to $20,000 for subsequent violations, along with potential cease-and-desist orders and damages awarded to affected consumers.
“Consumers deserve confidence that the law is on their side,” said Sampson, D-Hudson. “By establishing adequate penalties, this bill would make sure retailers understand their obligation to take digital coupon offers seriously.”
