M E M O R A N D U M

TO: Members of the Assembly Environment and Solid Waste Committee

FROM: Hilary Chebra, Manager, Government Affairs, CCSNJ

RE:                         A-2235 (McKeon/Kennedy)

The Chamber of Commerce Southern New Jersey (CCSNJ) would like to voice our concerns with A-2235 (McKeon/Kennedy) which would limit the size of shipping boxes that can be utilized by large online retailers and major retailers in the State to ship products to consumers.

              As written, the bill would prohibit any large online retailer or major retailer in the State from utilizing a shipping box to ship a product to a consumer that is greater than two times the volume of the product being shipped. Under the bill, “large online retailer” is defined as a business that sells goods over the internet, sends goods by mail or parcel delivery, and has annual gross sales equal to or greater than one million dollars in or into the State. A “major retailer” is defined as a retail establishment that occupies at least 75,000 square feet and has 50 or more employees.

While the CCSNJ appreciates the intent of the bill to reduce the environmental effect associated with online shopping, many companies are already taking aggressive action to improve their impact on the environment. This is going to be even more evident as more federal regulation comes online from the SEC on environmental reporting. Additional state regulation is wholly unnecessary.

Many New Jerseyians became reliant of ecommerce over the past two years. However, the effects of covid have created a myriad of challenges for retailers in the state that ship ecommerce. Supply chain issues, labor shortages and record high inflation have caused significant disruption to the industry. Additional regulation will only create more stress on already overburdened and stressed businesses. Further the increased cost of managing to a regulation will very likely be passed onto consumers to ensure businesses can remain healthy enough to continue operations, placing yet another burden on residents experiencing record high inflation. 

The rise in ecommerce has also increased the demand in warehouses, particularly in South Jersey. This has led to the creation thousands of jobs and boosted the logistics sector’s contribution to the state’s economy. With New Jersey’s reputation as an expensive place to do business, these additional regulations will make New Jersey less attractive for ecommerce businesses to locate here.

For these reasons, the CCSNJ respectfully opposes A-2235 (McKeon/Kennedy).