America’s second-largest mall facing lawsuit as officials insist it’s flouting ‘blue laws’

America’s second-largest mall facing lawsuit as officials insist it’s flouting ‘blue laws’

American Dream, the sprawling entertainment and retail complex in East Rutherford, New Jersey, is facing a legal challenge regarding its operating hours. The lawsuit, filed by the neighboring town of Paramus, alleges violations of Bergen County's "blue laws," centuries-old regulations restricting certain activities on Sundays.

At the heart of the dispute is the question of tradition versus modern commerce. Paramus argues that American Dream's Sunday operations give it an unfair advantage over smaller businesses that adhere to the blue laws. The town's mayor, Christopher DiPiazza, has publicly stated his concern that the mall's actions are detrimental to local taxpayers and residents.

Blue laws, rooted in the enforcement of the Christian Sabbath, have a long and complex history in the United States. While many states have repealed or significantly loosened these laws over the years, New Jersey retains them in select areas, creating a legal and social landscape where tradition and modern retail practices clash.

The lawsuit names not only American Dream but also East Rutherford and the New Jersey Sports and Exposition Authority, which are involved in the property's leasing and ownership. This broad scope suggests the potential for a significant legal battle with far-reaching implications for the region's commercial landscape.

American Dream, however, is standing firm, dismissing the lawsuit as a "meritless political stunt" orchestrated by rival business interests. A spokesperson for the complex asserted that Bergen County's blue laws do not apply to state-owned property, and that retail sales have been conducted on Sundays at the location for decades. The complex has stated that it anticipates its day in court.

An image collage containing 2 images, Image 1 shows FILE PHOTO: A shopper holds a Nike shopping bag, as global markets brace for a hit to trade and growth caused by U.S. President Donald Trump's decision to impose import tariffs on dozens of countries, in the King of Prussia Mall in King of Prussia, Pennsylvania, U.S., April 3, 2025. REUTERS/Rachel Wisniewski/File Photo, Image 2 shows Exterior view of the American Dream mega mall in East Rutherford, New Jersey

American Dream, which opened in 2019 after a protracted and turbulent development process, is currently the second-largest mall in the United States. Housing over 450 stores, 100 restaurants, and numerous entertainment attractions like the DreamWorks Water Park and Nickelodeon Universe, the mall aims to be a premier destination for shopping and leisure.

The journey to completion for American Dream was anything but smooth. Initial plans, dating back to 1996, faced environmental concerns due to the proposed construction on wetlands. The project then encountered numerous setbacks, including changes in ownership, design controversies, funding issues, and even weather-related damage.

Despite these challenges, the mall finally opened its doors, carrying a total price tag of around $5 billion. The sheer scale of the complex and the variety of attractions it offers are intended to draw visitors from across the region and beyond, establishing American Dream as a landmark destination.

However, even with its impressive size and array of offerings, American Dream still lags behind the Mall of America in Bloomington, Minnesota. The Mall of America boasts approximately 5.6 million square feet of retail space, housing over 500 stores and featuring its own indoor amusement park, solidifying its position as the largest mall in the United States.

The legal challenge faced by American Dream comes at a time when traditional shopping malls are already grappling with significant challenges. The rise of e-commerce, changing consumer habits, and economic pressures have all contributed to a decline in mall traffic and occupancy rates across the country. The challenges facing malls are considerable.

FILE PHOTO: A shopper holds a Nike shopping bag, as global markets brace for a hit to trade and growth caused by U.S. President Donald Trump's decision to impose import tariffs on dozens of countries, in the King of Prussia Mall in King of Prussia, Pennsylvania, U.S., April 3, 2025. REUTERS/Rachel Wisniewski/File Photo

As of April, around 1,200 malls remain operational in the United States, but projections indicate that this number could shrink to approximately 900 by 2028. This potential decline underscores the significant shifts occurring in the retail landscape and the need for malls to adapt and innovate to remain competitive.

The struggles of the mall industry are evident in the rising vacancy rates. The nationwide mall vacancy rate is significantly higher than the average retail vacancy rate, reflecting the challenges malls face in attracting and retaining tenants.

The changing retail landscape has even impacted well-established brands. Recently, struggling retailers have had to change operations, highlighting the difficulties even iconic brands face in the current market. Similarly, news of the saving of an iconic retail brand showcases the dynamic shifts and evolution happening within the retail landscape.

The lawsuit against American Dream underscores the complex interplay between tradition, commerce, and community values. The outcome of the legal battle could have far-reaching implications for retail regulations and the future of commercial development in New Jersey and potentially other states with similar blue laws.

The case also raises questions about the role of government in balancing the interests of businesses, residents, and religious traditions. As the legal proceedings unfold, observers will be closely watching to see how the courts navigate these complex issues and what precedents the case may set for future disputes.

Exterior view of the American Dream mega mall in East Rutherford, New Jersey.

The situation surrounding American Dream serves as a microcosm of the broader challenges facing the retail industry in the 21st century. Malls must adapt to changing consumer preferences, embrace new technologies, and find innovative ways to attract and retain shoppers in an increasingly competitive marketplace.

The ongoing saga of American Dream, from its initial conception to its current legal challenges, highlights the complexities and uncertainties inherent in large-scale commercial development. The project's long and winding road to completion serves as a cautionary tale for developers and policymakers alike.

Ultimately, the future of American Dream and other malls across the country will depend on their ability to evolve and adapt to the changing needs and preferences of consumers. Innovation, creativity, and a willingness to embrace new approaches will be essential for survival in the evolving retail landscape.

The conflict between Paramus and American Dream offers a lens through which we can examine the broader societal debates about the role of tradition in a rapidly changing world. It also forces us to consider the economic implications of restrictive regulations and the potential impact on local businesses and communities.

As the legal battle unfolds, it is crucial to consider all perspectives and to strive for a resolution that balances the interests of all stakeholders. A solution that respects both tradition and economic realities is essential for fostering a vibrant and sustainable community.

The case of American Dream and the blue laws serves as a reminder that the relationship between business and community is a complex and dynamic one. Open communication, collaboration, and a willingness to compromise are essential for navigating these challenges and building a thriving future for all.

The ongoing situation is a testament to the ever-changing landscape of retail and the complexities of balancing tradition with the demands of modern commerce. The outcome of this legal battle will undoubtedly have significant implications for the future of American Dream and the broader retail industry in the region.