While New Jersey’s Consumer Fraud Act (CFA) is widely acknowledged as one of the broadest and most liberal consumer protection statutes in the country, courts have recognized that there are limitations to its scope, particularly in commercial disputes. In fact, the recent decision by the Appellate Division in Princeton Healthcare System v. Netsmart N.Y., Inc., 422 N.J. Super. 467 (App. Div. 2011), demonstrates that although the CFA does not expressly differentiate between a business entity and an individual, the circumstances in which a business entity will have standing to sue under the CFA are far more narrow than those applicable to an individual.

The CFA does not expressly reference “consumers,” but instead provides that “[a]ny person who suffers any ascertainable loss of moneys or property, real or personal, as a result of the use or employment by another person of any method, act, or practice declared unlawful under this act or the act . . .” can assert a CFA claim. N.J.S.A. § 56:8-19. Because the CFA expressly defines “person” to include “any natural person or his legal representative, partnership, corporation, company, trust, business entity or association …,” N.J.S.A. § 56:8-1(d), business entities fall within the class of potential plaintiffs that can assert CFA claims. See Hundred East Credit Corp. v. Eric Shuster Corp., 212 N.J. Super. 350, 355 (App. Div. 1986).

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