Mailers Hub’s legal advisors have provided an update on what to know about New Jersey’s new data broker law.
New Jersey’s new data privacy law, governing “data brokers” and “data collectors” – much of which has taken immediate effect – has been a shock to the system for those working in and around direct omnichannel retailing. Even if it does not affect printers and mailers directly – some of which it may – the industry-wide repercussions make it worth your while to review this brief synopsis of three key points.
One
The law is in effect now and applies to any business or person who collects, sells, or licenses, the personal information of New Jersey residents. Most state privacy laws, like the New Jersey Data Privacy Act, apply only to businesses who process personal data above a certain threshold.
In New Jersey’s case, the threshold is records on 100,000+ New Jerseyans and/or businesses who derive 50%+ of their revenue from data sales and processing of personal data of 25,000+ New Jerseyans. The new law on “data brokers” and “data collectors” applies to anyone who collects, licenses, or sells personal information on any number of New Jerseyans.
Also unlike most state privacy statutes, which build in a grace period before they go into effect, most of these new provisions are already in effect.
Two
You cannot sell the sensitive data of New Jerseyans. The law bars the sale of sensitive data by “all individuals or legal entities regardless of the number of consumers whose data the individual or entity controls or processes.”
The definition of “sensitive data” includes, among other things, race or ethnicity information, health and medical information, financial account details, precise geolocation data, immigration status, biometric data, and any data collected from children.
Further, “sale” or “sell” under the statute “means sharing, disclosing, or transferring personal data for monetary or other valuable consideration.” This last provision will likely encompass list exchanges with non-affiliates to the extent the business providing personal data receives data of value in return.
While this provision should not affect name and address information, the content of some print catalogs or marketing materials of specialty retailers – targeting certain racial or ethnic groups, containing religious subject matter, or relating to personal health issues – may be affected. That matters because the statute applies a fine of $50,000 per record sold, offered for sale, or licensed.
Three
“Data Brokers” and “Data Collectors” will need to register and pay a registration fee, likely in early 2027.
The New Jersey statute also imposes a registration requirement on “data collectors,” a term covering any business that collects consumer personal data through a first-party relationship and then sells or licenses that information to a data broker.
A “data broker” is a person or legal entity that knowingly collects or purchases the personal data of a consumer with whom the person does not have a direct relationship and sells or licenses that data to a third party.
By March 2027, the state is supposed to establish a registry of “data brokers” and “data collectors.” Any business meeting either definition will have to register and pay an annual fee ranging between $5,000 (for processors of personal data of fewer than 100,000 New Jerseyans) and $1.5 million (for processors of personal data of more than 4.5 million New Jerseyans).
Because this law was unexpected and snapped into immediate effect, we recommend you consult privacy counsel to discuss whether and how your or your partners’ businesses may be affected.
This article was produced exclusively for Mailers Hub by David Swetnam-Burland of Brann & Isaacson.
Brann & Isaacson is a boutique law firm that represents large and small online and multichannel companies, printers, commercial mail producers, and IT service providers located across the country. The firm advises companies of all sizes, including many in the Internet Retailer’s Top 500 Guide.
Brann & Isaacson is Mailers Hub’s recommended legal counsel for commercial mail producers on legal issues, including tax, privacy, consumer protection, intellectual property, vendor contracts, and employment matters.
The points of contact at Brann & Isaacson are: Martin I. Eisenstein, David Swetnam-Burland, Stacy O. Stitham, and Jamie Szal.