The recent Appellate Division decision in Shaw v. Shand, 460 N.J. Super. 592 (App. Div. 2019), has upended the “learned professional” exception to the Consumer Fraud Act (CFA). The Shaw decision dramatically eroded the availability of the CFA exemption for “semi-professionals” by requiring a semi-professional to establish a clear conflict between the CFA and any applicable licensing regulations before the semi-professional is entitled to the exemption. Depending upon how future courts interpret Shaw, the case could have a broader effect on other licensed professionals, like accountants, architects, and engineers.

To fully understand the significance of the Shaw decision, some background is in order.