New Jersey Assembly Bill A4741

New Jersey 2024-2025 Regular Session

• Introduced: 9/12/24
• Refer: 9/12/24

Caption

Requires controller or processor to de-identify personal data and prohibits re-identification of de-identified data.

Impact

The introduction of A4741 is expected to significantly affect state laws regarding data privacy. By requiring de-identification prior to the sale of personal data, the legislation aims to limit the risks associated with identity theft and privacy breaches. The enforcement of this legislation will fall under the jurisdiction of the Office of the Attorney General, adding another layer of protection for consumers against potential misuse of their data. Furthermore, this bill could serve as a model for future legislation, encouraging other states to adopt similar measures in the effort to standardize data protection across the country.

Summary

Assembly Bill A4741, introduced in New Jersey, mandates that data controllers and processors must de-identify personal data before any sale and prohibits any re-identification of such data. The bill amends existing legislation established under P.L.2023, c.266, expanding on its framework for managing personal data. The intent is to enhance consumer privacy and protect individuals' data from unauthorized re-identification, which has become a critical issue in today's digital age. This legislation reflects a growing concern over data security and the ethical handling of personal information by businesses and data brokers.

Contention

While many stakeholders view A4741 as a necessary update to protect consumer privacy, there may be concerns regarding its impact on businesses that rely heavily on consumer data for targeted advertising and analytics. Businesses may argue that the required de-identification could hinder their ability to deliver personalized services and advertisements effectively, thus impacting their economic viability. Additionally, any exceptions made by the Director of the Division of Consumer Affairs can create ambiguity in enforcement, leading to challenges in compliance and regulatory clarity for businesses navigating these new requirements.