New Jersey officially adopts a data privacy law as the 14th State

Table of Contents


On January 16, 2024, New Jersey made a significant step towards protecting consumer privacy by enacting a comprehensive data privacy law, Bill 332. With Governor Phil Murphy’s signature, New Jersey has joined the ranks of 13 other states that have already put robust privacy regulations in place. This legislation aims to ensure that individuals’ personal data is protected from unauthorized access, disclosure, and misuse by businesses. This new law reflects New Jersey’s commitment to protecting its residents’ privacy and sets an example for other states to follow.

Understanding the scope of the law

The law includes provisions that focus on significant components such as personal data, data protection assessments, and the processing of sensitive data. The primary objective of this legislation is to regulate how companies handle consumer’s personal data, ensuring strict measures against unauthorized access, selling personal data, and targeted advertising.

With the new law, companies must implement robust security measures to protect sensitive personal data from unauthorized access or breaches. The law also mandates companies to conduct periodic data protection assessments to ensure compliance with the regulations. Additionally, companies must obtain explicit consent from consumers before processing their sensitive data, and they are prohibited from using such data for discriminatory purposes.

The law also aims to curb the practice of selling personal data. Companies must now obtain opt-in consent from consumers before disclosing or selling their personal data to third parties. Furthermore, targeted advertising practices are also subject to regulation under the new law, and companies must provide consumers with the option to opt-out of such practices.

Emphasis on consumer affairs

The comprehensive data privacy law is centered around protecting consumer affairs in New Jersey. This law represents a significant shift in how businesses operate within the state, as it empowers consumers with greater control over their personal data. One of the key objectives of this law is to increase transparency and accountability in how businesses handle user data.

This law is in line with the global trend towards robust data protection measures and sets a precedent for other states to follow suit. By implementing this law, New Jersey is taking a significant step towards protecting the privacy of its citizens and ensuring that businesses operate ethically and responsibly.

The commercial and employment context

New Jersey’s data privacy law is unique compared to other laws in the country because it applies to personal data processed in a commercial or employment context. This means that any personal information collected or processed for commercial purposes or employment-related activities must adhere to the same strict data protection and privacy standards.

The legislation ensures that individuals’ personal information is safeguarded regardless of the context in which it is collected or processed. By taking a comprehensive approach to data privacy, the state reinforces its commitment to protecting the privacy rights of its citizens and provides a clear framework for businesses to operate within that framework.

Pandectes GDPR Compliance app for Shopify Stores - New Jersey officially adopts a data privacy law as the 14th State - USA

Considerations in the household context

The state of New Jersey has taken a comprehensive approach to data privacy by recognizing the diverse ways personal data is processed, including its handling in the household context. This recognition reflects the nuanced nature of data-processing activities that occur within homes.

The state’s data privacy law aims to provide a comprehensive framework that caters to these specific scenarios, ensuring that the privacy of individuals is protected in all contexts, including within the household. By extending its protective umbrella to considerations in the household context, the state’s data privacy law seeks to create a safe and secure environment for all individuals, regardless of where their personal data is being processed.

Universal opt-out mechanisms: Empowering consumer control

One of the innovative features of the law is the introduction of universal opt-out mechanisms, designed to grant consumers the right to opt-out of having their personal data shared for certain purposes. This provision provides individuals with a practical means to exercise control over their information, and the mechanisms are universal, applying to all individuals regardless of their location, age, or other demographic factors.

By opting out of data sharing, individuals can safeguard their privacy and prevent unwanted use of their personal information, such as targeted marketing or spam emails. Overall, implementing universal opt-out mechanisms is a significant step toward ensuring data privacy and consumer protection in today’s digital age. Additionally, the law introduces a universal opt-out mechanism, subject to the extent technically feasible, recognizing practical constraints businesses may face in implementing certain measures while reinforcing the overarching commitment to empowering consumers.

Opt-Out mechanism for children’s data

The newly introduced regulation recognizes the distinct challenges of handling children’s data and has taken a proactive step toward addressing them. To ensure that the sensitive personal information of minors is protected, the law mandates an opt-out mechanism tailored to this specific demographic.

This means that by default, children’s personal data will remain private unless their parents or legal guardians choose to provide consent. The legislation aligns with global efforts to enhance the privacy rights of minors and provides a much-needed layer of protection for children’s sensitive information.

Heightened focus on physical data security practices

The law has significantly emphasized physical data security practices in light of the increased risk of digital transactions and data breaches. Businesses must implement robust measures to protect physical data from theft, damage, or unauthorized access. The state of New Jersey recognizes that fortifying its defenses against potential threats to physical data privacy can enhance overall data privacy and security.

This includes implementing access controls, surveillance, and alarm systems to safeguard data storage facilities and secure transportation and disposal methods for sensitive data. By taking these steps, New Jersey can ensure its citizens’ data remains secure and private while promoting trust and confidence in its digital economy.

Processes for personal data and health information

New Jersey has recently passed a comprehensive data privacy law that aims to regulate the handling of personal data. The law is especially concerned with consumer health data and strongly emphasizes the intricate processes involved in managing this type of information.

By doing so, New Jersey is keeping pace with the evolving landscape of healthcare data management, which requires a nuanced approach to processing personal data that can significantly affect individuals. This law is important to ensure that individual’s privacy is protected and their personal data is handled responsibly in the healthcare sector.

Pandectes GDPR Compliance app for Shopify Stores - New Jersey officially adopts a data privacy law as the 14th State - Law

Overview of fines and enforcement

Violations of the New Jersey data privacy law, specifically Senate Bill 332, carry significant financial penalties and enforcement measures. A breach of the law constitutes a violation of the New Jersey Consumer Fraud Act, leading to potential fines for non-compliance. These fines can reach up to $10,000 for the first violation and increase to a maximum of $20,000 for subsequent violations.

Implications of violations

The legislation enforcement mechanisms aim to ensure strict adherence to data privacy regulations, emphasizing the importance of businesses complying with the newly enacted law. Fines are imposed not only as a deterrent but also as a means of holding entities accountable for mishandling consumer data.

Penalties for subsequent violations

The fines outlined in the legislation are structured to escalate for repeat offenders, emphasizing the seriousness of continued non-compliance. Businesses should be particularly vigilant to avoid the financial repercussions of subsequent law violations.

Accountability Act: A pillar of New Jersey’s privacy framework

The Accountability Act is an important component of New Jersey’s comprehensive data privacy law, which lays out a structured framework for businesses to conduct data protection assessments. The legislation aims to ensure that businesses in a state of compliance with data protection regulations take proactive measures to assess and mitigate risks associated with processing personal data. Businesses must implement these measures since they collect and process sensitive personal data of their clients.

By conducting regular assessments, businesses can identify and mitigate potential risks to the privacy and security of personal data, ultimately building trust with their customers and protecting their reputation. Therefore, the Accountability Act is an essential tool that helps businesses comply with data protection laws and establish a culture of responsible data handling.

The role of the New Jersey Attorney General

In New Jersey, the role of the Attorney General is critical in ensuring that businesses comply with the law. The office is tasked with the responsibility of overseeing and enforcing regulations, making sure that businesses adhere to the law at all times.

This is done through a robust regulatory framework that includes active monitoring and enforcement mechanisms, which are designed to create a deterrent effect for businesses that may be considering non-compliance. In other words, the Attorney General’s office plays a vital role in maintaining a fair and safe business environment in New Jersey by ensuring that businesses follow the law and face consequences if they don’t.

Pandectes GDPR Compliance app for Shopify Stores - New Jersey officially adopts a data privacy law as the 14th State - USA flag

Regulating the sale of personal data

New Jersey Legislature has enacted strict regulations on the sale of personal data in order to ensure that businesses are taking appropriate measures to safeguard consumer’s financial accounts and personal data. This regulatory approach reflects the state’s commitment to protect the privacy rights of individuals and to prevent any potential misuse of their personal information.

These regulations aim to strike a balance between promoting economic activities and preserving the confidentiality of individuals’ sensitive data. The New Jersey Legislature’s emphasis on data protection highlights the state’s efforts to maintain a safe and secure environment for its citizens.


As New Jersey officially adopts a comprehensive data privacy law, it not only joins the ranks of states actively championing consumer rights but also sets a precedent for a holistic and forward-thinking approach to data protection.

This landmark legislation underscores the state’s commitment to navigating the complexities of the digital era while safeguarding the privacy and security of New Jersey residents’ personal data. The multi-faceted nature of the law, covering everything from processing sensitive data to accountability measures, positions New Jersey as a beacon for other states navigating the intricate landscape of data privacy legislation.

Make your Shopify Store GDPR/CCPA compliant today
Pandectes GDPR Compliance App for Shopify
Subscribe to learn more

You Might Also Like

Scroll to Top