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New Jersey Passes New Data Privacy Law

Data privacy mapNew Jersey recently became the 14 state to pass or enact comprehensive data privacy legislation.

N.J. Gov Phil Murphy on Jan. 16 signed S332/A1971, which requires the notification to consumers of collection and disclosure of personal data by certain entities, including internet websites and online providers. Under the legislation, these entities are required to notify customers of the collection and disclosure of personal information to other third parties and to provide customers with an ability to opt-out of that collection or disclosure.

The law will go into effect Jan. 15, 2025.

The legislation contains an exemption for personal data subject to the Gramm-Leach-Bliley Act (GLBA), along with an exemption for publicly available information. ALTA has held that any comprehensive data privacy legislation should include an exemption for entities subject to the GLBA. Since 1999, this federal law has strictly limited financial institutions’ use and sharing of customers’ personal information. 

The legislation also entitles consumers to know what data is held by the operator, so they have the ability to correct or delete incorrect information. The operator also must limit the collection of personal data to what is adequate, relevant, and reasonably necessary to their business and they must specify the express purposes for which personal data are processed.

Other states to pass data privacy legislation include California, Oregon, Montana, Utah, Colorado, Texas, Iowa, Indiana, Tennessee, Virigina, Florida, Delaware and Connecticut.


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