By Brad D. Feldman, Gregory D. Herrold and James Hearon
In a unanimous opinion, Lowe v. Audet, __ N.J. ___ (2026) (slip op.), the New Jersey Supreme Court held that insurance brokers, producers, and agents are not exempt from the Consumer Fraud Act (CFA), N.J.S.A. 56:8-1, under the judicially created “learned professional” exemption, as semi-professionals or otherwise. The Court’s opinion will have an immediate impact on the insurance industry in New Jersey, subjecting insurance brokers, agents, and producers to potential liability under the CFA, one of the nation’s strongest consumer protection laws.
Lowe’s reach, however, is not limited to the insurance industry. The opinion portends potential significant exposure for a broad range of other industries currently reliant on the “learned professional” exemption, including the possibility of treble damages, attorneys’ fees, and costs available under the CFA. The Court invited the Legislature to clarify whether certain professionals are exempt from CFA liability and, if so, to identify those professionals with specificity. But the Court signaled that, absent legislative clarity, it will “await a case that presents a direct challenge” to the “learned professional” exemption. While declining to formally abolish the exemption, the Court expressed “serious doubts” about its textual and legislative foundations and left the exemption’s continued viability an open question under New Jersey law. The opinion serves as a stark warning to regulated professionals and businesses operating in New Jersey.
Read the full article published in The New Jersey Law Journal on the Duane Morris LLP website.