New Jersey Assembly Bill A2453

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires certain persons and business entities to maintain comprehensive information security program.

Impact

If enacted, A2453 will amend existing New Jersey law, specifically the Consumer Fraud Act, by establishing penalties for willfully violating the provisions concerning comprehensive information security programs. Entities that fail to comply with the requirements could face financial penalties—up to $10,000 for first offenses and $20,000 for repeat violations. Additionally, it enables the Attorney General to issue cease and desist orders and assess punitive damages against violators. This introduces a stricter regulatory environment aimed at enhancing consumer protection and promoting accountability among organizations that handle personal data.

Summary

Assembly Bill A2453 aims to enhance data protection for New Jersey residents by mandating that certain individuals and business entities maintain a comprehensive information security program. The bill defines the measures necessary to safeguard personal information, such as social security numbers, driver's license numbers, and financial account details, which are deemed sensitive. By requiring consistent security protocols across the board, this legislation facilitates a structured approach to preventing unauthorized access and potential breaches of security that could compromise residents' identities.

Contention

The bill may generate discussion regarding the balance between privacy and the operational burden placed on businesses, particularly small enterprises. Critics could argue that the requirements for comprehensive information security programs might be overly burdensome or costly for small business owners. Supporters, however, may contend that the measures are essential for protecting consumers in an increasingly digital world, where data breaches are prevalent and can have severe consequences for individuals. The successful implementation and compliance calls for both a significant investment in security measures and ongoing staff training, which could raise concerns about resource allocation and feasibility.