An Act concerning the sale of energy drinks and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act:

"Energy drink" means a prepackaged nonalcoholic beverage that has been intentionally supplemented by the manufacturer with caffeine.

"Label" means a display of written, printed, or graphic matter that appears on a bottle, the immediate wrapper of a bottle, can, container, or package of an energy drink, or that otherwise accompanies the energy drink at the time of its distribution or sale.

2. Any energy drink sold, offered for sale, or distributed in this State shall include a label to warn consumers of the risks associated with a person under the age of 18 consuming an energy drink. The information on the label shall be displayed in a manner that is conspicuous and easily understandable to consumers and be substantially similar to the following:

"WARNING! THIS DRINK COULD BE HARMFUL TO CHILDREN AND ADOLESCENTS."

3. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to sell, offer for sale, or distribute any energy drink without a label as required pursuant to section 2 of this act.

4. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety, in consultation with the Commissioner of Health, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the purposes of this act.

5. This act shall take effect on the first day of the sixth month next following the date of enactment.

STATEMENT

This bill would require any energy drink sold, offered for sale, or distributed in this State to include a label to warn consumers of the potential risks associated with a person under the age of 18 consuming an energy drink. The information on the label would be displayed in a manner that is conspicuous and easily understandable to consumers and be substantially similar to the following:

"WARNING! THIS DRINK COULD BE HARMFUL TO CHILDREN AND ADOLESCENTS."

The Director of the Division of Consumer Affairs in the Department of Law and Public Safety, in consultation with the Commissioner of Health, would adopt rules and regulations necessary to effectuate the bill's purposes.

A violation of the bill's provisions would be an unlawful practice under the consumer fraud act, and be punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages and the awarding of treble damages and costs to the injured.

The bill would require energy drinks to be labeled to inform consumers of the hidden dangers of energy drinks and their ingredients. Energy drinks are marketed primarily to young people, but most energy drinks are carbonated drinks that contain large amounts of caffeine and sugar with additional ingredients that could be harmful to children. The American Academy of Pediatrics (AAP) finds that the substances in energy drinks - such as caffeine, the most popular stimulant - have been linked to a number of harmful health effects in children, including effects on the developing neurologic and cardiovascular systems. The AAP finds that energy drinks pose potential health risks because of the stimulants they contain, and should never be consumed by children or adolescents, and caffeine-containing beverages should be avoided by children generally.