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New Law Combats Internet Dependency and Abuse

Governor Phil Murphy today signed legislation (S332/A1971) protecting consumer privacy by requiring the notification to consumers of collection and disclosure of personal data by certain entities, including internet websites and online providers. Under the legislation, these entities are required to notify customers of the collection and disclosure of personal information to other third parties and to provide customers with an ability to opt-out of that collection or disclosure.

“In a rapidly growing digital age, our society has become increasingly dependent on the internet to complete day-to-day tasks from shopping and working to deeply personal tasks such as managing finances and medical care,” said Governor Murphy. “However, far too often consumer privacy is exploited without consumers knowing that their data is being shared and sold. This important legislation will help consumers reclaim control over their own personal data, and allow them the choice to share information that is personal to them.” 

S332/A1971 requires an operator that collects a consumer’s information through its site for the purpose of selling the consumer’s information to post a link clearly and conspicuously on its site, or in another prominently accessible location that allows them to opt-out of the collection of the personal data. The bill also entitles the consumer to know what data is held by the operator, so they have the ability to correct or delete incorrect information. The operator also must limit the collection of personal data to what is adequate, relevant, and reasonably necessary to their business and they must specify the express purposes for which personal data are processed.

 

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