A BELOVED mall is caught up in a legal battle over a frustrating ban on Sunday shopping that has historically pushed shoppers out.
After months of back and forth, the three million-square-foot retail and entertainment complex has seemingly found a way to bypass the shopping ban.
The American Dream Mall in East Rutherford, New Jersey – one of the biggest malls in the country – has been grappling with a long-standing ban on Sunday retail sales commonly known as “Blue Laws.”
The borough of Paramus – a retail rival to American Dream – filed a lawsuit against the mall in August, alleging that the shopping center violated Bergen County’s Blue Laws by permitting over 120 retail tenants to operate on Sundays.
The borough claimed that American Dream has ignored the ban since at least January 2025, with Paramus seeking fines up to $5,000 per violation as well as a formal declaration that the mall’s actions constitute a public nuisance.
Bergen County is the only county left in New Jersey enforcing a Sunday shopping ban, which has religious roots and prevents the sale of apparel, furniture, appliances, and building materials.
While the law remains popular among many residents and retailers, others are tired of what they view as an “outdated” law.
The dispute with Paramus – one of the highest-grossing retail municipalities in the country with over $6 billion in yearly sales – was triggered when American Dream started to advertise Sunday shopping earlier this year.
By ignoring the shopping ban, the borough fears that the beloved mega-mall will steal billions in potential revenue from businesses in Paramus, which is famous for its strict enforcement of Blue Laws.
BACK ME UP
American Dream is now getting legal support from its landlord, the New Jersey Sports and Exposition Authority, or NJSEA, which owns the land that it is built on, according to NJ.com.
NJSEA, a defendant in the lawsuit, has moved to dismiss most of the claims that Paramus filed against American Dream.
In a court filing earlier this month, NJSEA argued that Paramus failed to follow the necessary legal procedures prior to suing the mall and lacks the power to enforce a countywide law because American Dream is on state land, meaning that the borough cannot enforce county laws outside its own borders.
Because the mall sits on the state-owned Meadowlands complex, NJSEA said that the mall is exempt from local and county ordinances – similar to how MetLife Stadium can sell merchandise during Giants or Jets games on Sundays.
The authority’s filing also states that Paramus cannot file a lawsuit claiming injury to residents of Bergen County, only to itself, and that the mall’s Sunday operations have no material impact on Paramus’ municipal operations.
“Simply put, Paramus is a legal stranger to the question of whether the Sunday Closing Law applies to the American Dream Mall,” stated NJSEA’s motion to dismiss.
Top 10 Largest Malls in the United States
- Mall of America – Bloomington, MN
- American Dream – East Rutherford, NJ
- King of Prussia Mall – Prussia, PA
- South Coast Plaza – Costa Mesa, CA
- The Galleria – Houston, TX
- Aventura Mall – Aventura, FL
- Del Amo Fashion Center – Torrance, CA
- Destiny USA – Syracuse, NY
- Ala Moana Center – Honolulu, HI
- Palisades Center – West Nyack, NY
“Paramus has no more (or less) interest in the answer to that legal question than any other citizen in New Jersey, or any of the
other 500+ municipalities across the State.”
NJSEA also argued that its lease with American Dream does not require the mall to enforce Blue Laws and that its oversight should not be dictated by a neighboring municipality.
“The Authority should be afforded discretion as to how to best handle its tenant relationship, rather than have that commercial relationship micromanaged by the courts (or a stranger like Paramus),” said the motion to dismiss.
The case is pending in the New Jersey Superior Court with oral arguments regarding the motion to dismiss scheduled for early 2026.