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New Jersey Looks to Other States In Enacting Data Privacy Legislation
In an era dominated by the ever-expanding digital and data-driven business landscape, state legislators across the United States have responded with a flurry of new laws aimed at safeguarding a consumer's personal information. As of this writing, four states have comprehensive laws in effect governing the use of personal information obtained from their respective state residents (California, Virginia, Colorado, and Connecticut), one state has a statute becoming effective at the end of 2023 (Utah), and eight states have passed similar statutes that become effective on various dates from July 1, 2024 through Jan. 1, 2026 (Delaware, Florida, Indiana, Iowa, Montana, Oregon, Tennessee, and Texas).
In recent years, the New Jersey Legislature has considered various versions of privacy legislation but has yet to adopt and implement comprehensive privacy legislation for New Jersey residents. Among the bills currently pending are New Jersey Assembly Bill A505, titled the "New Jersey Disclosure and Accountability Transparency Act" (NJ DaTA), and New Jersey Senate Bill S332, which requires online services to notify consumers of collection and disclosure of personal information. NJ DaTA was re-introduced in the Assembly on Jan. 11, 2022 (last Session Bill Number A3283), and contains detailed provisions regarding consumer privacy protections, including a proposal to establish an Office of Data Protection and Responsible Use in the Division of Consumer Affairs. At this juncture, there has been no publicly recorded activity on the NJ DaTA bill since it was introduced, and it appears to be stalled in the Assembly Science, Innovation and Technology Committee. However, S332 has seen significantly more progress, having passed in the Senate on Feb. 2, 2023, and being reported out of the Assembly Science, Innovation and Technology Committee with amendments as a Fourth Reprint on May 11, 2023.
The various privacy statutes — whether already enacted, or like New Jersey still in the legislative process — include provisions that have a direct (and often dramatic) impact on the scope of application, protections afforded to the respective state residents, and effect on businesses operating in the state. For example, such provisions relate to the following issues: i) the threshold for application; ii) the scope of an individual's rights with respect to the personal information collected; iii) the scope of any opt-in/opt-out rights for the collection and processing of personal information; iv) the existence of any private right of action; and v) the exceptions to application of the statute. As the New Jersey Legislature continues to evaluate, revise, and amend the terms of proposed comprehensive privacy legislation, a review of these key provisions in the current version of S332 and comparison to existing statutes offers guidance on what privacy rights and obligations may look like in New Jersey if and when the proposed legislation is ultimately enacted.
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