Murphy Signs Legislation Limiting Collection of Consumer Data

Governor Phil Murphy today signed legislation (S332/A1971) requiring the notification to consumers of the collection and disclosure of personal data by entities like 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 the ability to opt out of that collection or disclosure.

S332/A1971 requires an operator that collects and sells a consumer’s information through its site 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, allowing consumers to correct or delete that 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.

Primary sponsors of S332/A1971 include Senator Troy Singleton, former Governor and Senator Richard J. Codey, now-Senator and former Assemblyman Raj Mukherji, now-Senator and former Assemblyman Paul D. Moriarty, and former Assemblyman Daniel R. Benson.