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NJ S1913

NJ S1913
"Personal Information and Privacy Protection Act"; restricts collection and use of personal information by retail establishments for certain purposes.


summary

Introduced
03/10/2016
In Committee
05/11/2017
Crossed Over
06/22/2017
Passed
06/29/2017
Dead
Signed/Enacted/Adopted
07/21/2017

Introduced Session

2016-2017 Regular Session

Bill Summary

This bill establishes the "Personal Information and Privacy Protection Act" (PIPPA). The bill places restrictions on the way retail establishments may collect and use the personal information contained in the electronic data embedded in identification cards, such as driver's licenses. Businesses commonly engage in the practice of "scanning" the barcodes on identification cards for purposes of verifying the authenticity of the card, verifying a consumer's age and identity, and preventing fraudulent merchandise return practices. Current identity theft law only provides that a consumer and the State Police must be notified in the case of a security breach related to a computerized record of personal information. This bill sets forth the purposes for which identification cards may be scanned by retail establishments and describes the information that may be gathered by scanning. Under the bill, a retail establishment may scan a person's identification card only for the following purposes: (1) to verify the authenticity of the card or to verify the age or identity of the person in certain circumstances; (2) to prevent fraud or other criminal activity, in the case of merchandise return or exchange, via a fraud prevention service company or system; (3) to establish or maintain a contractual relationship. (4) to record, retain, or transmit information as required by State or federal law; (5) to transmit information to a consumer reporting agency, financial institution, or debt collector to be used as permitted by federal law; or (6) to record, retain, or transmit information by a covered entity governed by medical privacy and security rules established pursuant to federal law. Information that may be collected is limited to the person's name, address, date of birth, and identification card number. The bill also specifies that any information collected, which is permitted to be retained by a retail establishment, must be securely stored and any security breach of the information must be reported to any affected person and the State Police in compliance with current law. A violation of the bill's provisions will result in a civil penalty of $2,500 for a first offense and $5,000 for any subsequent offense. Additionally, the bill provides that any person aggrieved by a violation may bring an action in Superior Court to recover damages.

AI Summary

This bill establishes the "Personal Information and Privacy Protection Act" (PIPPA) which restricts the way retail establishments can collect and use the personal information contained in identification cards, such as driver's licenses. The bill sets forth the specific purposes for which a retail establishment may scan a person's identification card, such as verifying the authenticity of the card, preventing fraud, and establishing a contractual relationship. It limits the information that can be collected to the person's name, address, date of birth, and identification card number, and requires any retained information to be securely stored. The bill also imposes civil penalties for violations and allows individuals to bring legal action to recover damages.

Committee Categories

Business and Industry, Housing and Urban Affairs

Sponsors (12)

Last Action

Approved P.L.2017, c.124. (on 07/21/2017)

bill text


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