Bill > A5328

This bill establishes a comprehensive regulatory framework for data brokers (entities that collect and sell consumer personal data without a direct relationship to the consumer) and data collectors in New Jersey by requiring them to annually register with the Division of Consumer Affairs, pay a tiered registration fee ranging from $5,000 to $1.5 million based on the number of state residents whose data they handle, and maintain detailed public disclosures regarding their privacy practices, data breach histories, and opt-out mechanisms. Furthermore, the legislation explicitly prohibits these entities from selling or licensing "sensitive data"—which is defined to include precise geolocation data, financial information, health conditions, racial or ethnic origin, sexual orientation, and data concerning children—carrying heavy civil penalties of $50,000 per record for violations, alongside daily fines of $2,500 for failing to register or update required information. Designed to enhance consumer privacy alongside existing state laws, the bill also mandates strict data security practices, enforces consumer consent requirements for targeted advertising and profiling of minors, and outlines specific exemptions for entities already heavily regulated under existing federal and state laws, such as financial institutions governed by the Gramm-Leach-Bliley Act and healthcare providers subject to the Health Insurance Portability and Accountability Act (HIPAA).