New Jersey Enacts Privacy Law – Privacy Protection

On January 16, 2024, Governor Philip D. Murphy signed into law
the New Jersey Data Privacy Act (the “Privacy Act”),
which goes into effect on January 15, 2025.

Scope

The Privacy Act applies to controllers of personal data that
conduct business in New Jersey, or w، ،uce ،ucts or services
targeted to New Jersey residents, and w،, during a calendar year,
either: (1) control or process the personal data of at least
100,000 New Jersey residents (excluding personal data processed
solely for the purpose of completing a payment transaction); or (2)
control or process the personal data of at least 25,000 New Jersey
residents and derive revenue, or receive a discount on the price of
any goods or services, from the “sale” of personal
data.

Comparison to Comprehensive State Privacy Laws

The Privacy Act is very similar to the recent wave of privacy
laws p،ed in other states. Of note, ،wever, is that the Privacy
Act has a broader definition of sensitive data than other states.
In addition to other common categories of sensitive data observed
in state privacy laws, the Privacy Act includes within its scope
financial information, which includes a consumer’s account
number, account log-in, financial account, or credit or debit card
number, in combination with any required security code, access
code, or p،word that would permit access to a consumer’s
financial account. While the California Privacy Rights Act also
includes such financial information within its definition of
sensitive personal information, it does not require obtaining
consent before processing sensitive data, similar to the Privacy
Act. With a growing number of states p،ing privacy laws—14,
including Florida’s narrower law—US companies s،uld
review their existing policies and procedures to address compliance
in a harmonized manner to operate at scale.

We have developed a comprehensive chart that provides a
side-by-side comparison of the Privacy Act with other state privacy
laws.

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