Credit: Scanrail/Adobe Stock Seller Beware: Why 'Robey v. Sparc' Represents a Liability Threat to Retailers
'Robey' represents a significant departure from a trend of ever-stricter interpretation of the ascertainable loss requirement that developed in the 2000s and that has largely remained unchallenged since.
July 13, 2023 at 10:00 AM
8 minute read
The New Jersey Supreme Court will soon have the opportunity to review Robey v. SPARC Group, 474 N.J. Super. 593 (App. Div. 2023). If affirmed, Robey has the potential to significantly expand the scope of the New Jersey Consumer Fraud Act (CFA), N.J.S.A 56:8-1 et seq., by loosening the standards for the "ascertainable loss" that a plaintiff must demonstrate to recover money damages in a private action. Because the CFA is often the underpinning of a wide variety of suits brought as putative class actions on behalf of New Jersey consumers—and sometimes consumers nationwide—the ultimate outcome in Robey could invite a multitude of future consumer class actions that would not otherwise have been brought and change discounting practices in the retail industry in New Jersey.
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