New Jersey Assembly Bill A505

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

"New Jersey Disclosure and Accountability Transparency Act (NJ DaTA)"; establishes certain requirements for disclosure and processing of personally identifiable information; establishes Office of Data Protection and Responsible Use in Division of Consumer Affairs.

Impact

The bill is expected to have significant implications for data privacy and consumer protection in New Jersey. By establishing strict guidelines for the management of personally identifiable information, the legislation seeks to enhance consumer trust in businesses collecting and processing their data. It aims to mitigate risks associated with data breaches, which have become increasingly prevalent. The establishment of the Office of Data Protection and Responsible Use will serve as a regulatory body to oversee compliance and provide resources for consumers and businesses alike, thus promoting responsible data use across the state.

Summary

Assembly Bill A505, named the 'New Jersey Disclosure and Accountability Transparency Act (NJ DaTA)', aims to establish comprehensive rights for consumers regarding the handling and processing of their personally identifiable information (PII). The bill mandates that any controller, defined as a person or entity that collects and determines the purposes of processing consumer data, can only process such information under specific conditions. These include obtaining consumer consent, fulfilling contractual obligations, or complying with a legal duty. The act emphasizes the need for transparency by requiring controllers to clearly communicate how consumer data is processed at the point of collection.

Contention

Notably, the bill does face some contention regarding the balance between business interests and consumer protection. Opponents argue that the stringent requirements for handling data could impose burdens on businesses, particularly small and medium enterprises that may not have the resources to implement the necessary compliance measures. Advocacy groups, however, assert that the strong consumer protections are essential for safeguarding individuals’ rights in an increasingly digital world. The bill's provisions also indicate penalties for non-compliance, including fines, adding another layer of pressure on businesses to adapt to these new requirements.