In a 4-3 ruling, the New Jersey Supreme Court issued an important decision in the consumer class action space, effectively sounding the death knell for so-called “no injury” class actions by clarifying the standard for the type of “ascertainable loss” a plaintiff must demonstrate to recover money damages in a private action under the New Jersey Consumer Fraud Act, N.J.S.A 56:8-1 et seq. (CFA). Robey v. SPARC Grp., 256 N.J. 541 (2024). Because the CFA is often the underpinning of many suits filed as putative class actions covering an array of business practices, Robey now precludes many suits that might have been brought under earlier CFA jurisprudence. The decision also has important ramifications for the New Jersey retail industry.

Originally only enforceable by the attorney general, the CFA was amended in 1971 to add a private right of action. To state a private claim, plaintiffs must show: (1) unlawful conduct by the defendant (either misrepresentations of fact or other affirmative acts, knowing omissions, or regulatory violations); (2) an “ascertainable loss” of money or real or personal property; and (3) a causal relationship between the first two elements.

‘Robey’