N.J. Fraud Law Doesn't Apply to Out-of-State 3G Telematics Consumers, Says VW

The U.S. District Court for New Jersey in Newark should dismiss all the plaintiffs’ 3G telematics class-action claims against Volkswagen Group of America under the New Jersey Consumer Fraud Act (NJCFA), said VWGoA’s reply memorandum Monday (docket 2:22-cv-06230) in support of dismissal (see 2306200001). The plaintiffs are VW and Audi owners in two consolidated class actions who allege VWGoA shortchanged them when it failed to upgrade the telematics equipment in their vehicles after the wireless carriers discontinued their 3G services, rendering roadside assistance and other internet services inoperable. The NJCFA claim can’t be asserted by anyone who didn’t buy a vehicle in New Jersey, and thus can’t be applied “to a proposed nationwide class,” said VWGoA’s memorandum. The plaintiffs “confusingly -- and mistakenly -- contend” VWGoA didn’t identify any conflict between New Jersey’s NJCFA and other states’ laws and “chose to cite New Jersey cases, showing that New Jersey law should apply to a putative nationwide class,” it said. But VWGoA “did identify a conflict between the NJCFA and the consumer fraud statutes of other states, as demonstrated by the supporting case law,” including cases the plaintiffs cite, it said. Courts have “routinely found” that being headquartered in New Jersey isn’t sufficient “to apply the NJCFA to out-of-state consumers,” it said.