New Jersey Privacy Laws for Small Businesses Effective Jan 15, 2025
by Richard Delaney, CSO
Effective Date: January 15, 2025
New Jersey has taken a significant step forward in consumer privacy protections with the enactment of Senate Bill 332. This new law requires businesses operating in the state or targeting New Jersey residents to adopt stringent measures to protect personal data. These changes could substantially impact your business, regardless of its size. Here’s what you need to know to stay compliant and maintain consumer trust.
Key Provisions of the Law
Transparency in Data Collection: Businesses must disclose:
The types of personal data they collect and why it’s being used.
Any third parties with whom the data is shared.
Clear instructions on how consumers can exercise their rights.
Enhanced Consumer Rights: New Jersey residents now have the right to:
Opt Out: Prevent the sale or targeted use of their data.
Access Data: Request a copy of the personal data a business holds about them.
Request Deletion: Ask for their personal data to be deleted, subject to certain exceptions.
Consent for Sensitive Data: Explicit consent is required before collecting or processing sensitive information such as financial, biometric, or health-related data.
Opt-Out Mechanism: Businesses must implement an easy-to-use system for consumers to opt out, such as a web link or phone number.
Data Security Requirements: Companies must take reasonable measures to protect personal data and promptly notify individuals in case of a breach.
Who Is Affected?
This law applies to businesses that:
Operate in New Jersey or target New Jersey residents.
Process data from at least 100,000 consumers annually or at least 25,000 if their revenue depends on data sales.
Practical Implications for Businesses
Cold Calling and Marketing
If your business engages in cold calling or direct marketing, ensure you:
Disclose how you source consumer data.
Provide opt-out options for consumers.
Respect the preferences of those who have opted out.
Selling Leads or Data
For businesses selling consumer data:
Clearly inform consumers of these practices.
Allow consumers to opt out before their data is sold.
Securing Data
To enhance data security, businesses should:
Regularly audit their security protocols.
Limit data collection to what’s necessary for operations.
Penalties for Non-Compliance
The New Jersey Division of Consumer Affairs will oversee enforcement. Non-compliance can result in:
Fines and penalties.
Reputational damage and loss of consumer trust.
Businesses have 30 days to address violations after receiving a notice. However, proactive compliance is crucial to avoid these issues.
How to Prepare
Review Data Practices: Audit how you collect, process, and share consumer data.
Update Privacy Policies: Ensure your policies meet the law’s requirements.
Implement Consumer Controls: Create systems for opt-out and data access requests.
Train Employees: Educate your team on handling consumer data responsibly.
Seek Expert Advice: Work with legal and IT professionals to ensure compliance.
Need Help Navigating These Changes?
Delaney Computer Services specializes in helping businesses adapt to regulatory changes while maintaining efficiency. From updating data policies to enhancing system security, we provide comprehensive support to help you comply with New Jersey’s new data privacy law.