A new privacy law in New Jersey prohibits operators of websites and online services from selling precise location information and other "sensitive" data.
The
measure (A5328), which was passed June 28, was signed into law by Governor Mikie Sherrill on June 30.
The statute
defines "sensitive" data as including information that can pinpoint someone's location within a 1,750-foot radius, as well as information that can reveal someone's race, ethnic origin, religion,
health condition, immigration status, bank account numbers and certain genetic or biometric data.
Several other states, including Maryland, Oregon, Connecticut and Virginia, have recently passed laws prohibiting the sale of
precise geolocation data.
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Major ad industry groups opposed the law's prohibition on the sale of location data, arguing in a June letter to lawmakers that New Jersey's existing
privacy law -- which allows businesses to process or sell location data with consumers' consent -- "already provides strong protections for location data."
A "sweeping ban
would unnecessarily disrupt data practices that allow advertisers and nonprofits to reach consumers with relevant content and advertising, enabling consumers to learn about goods and services that are
near to them," the Association of National Advertisers, American Association of Advertising Agencies, American Advertising Federation and Digital Advertising Alliance wrote.
The law also requires data brokers to register with the state and pay fees ranging from $5,000 (for brokers that hold data on 100,000 or fewer consumers in New Jersey) to $1.5 million
(for brokers holding data on more than 4.5 million consumers in the state).
The state Office of Legislative Services estimated that the law could bring in "significant" revenue "in the millions or tens of millions of dollars annually."