Senate Commerce Committee Statement to Senate, No. 332 (State of New Jersey, June 9, 2022)

Summary

This is a Senate Commerce Committee statement to the New Jersey Senate on Senate Bill No. 332, dated June 9, 2022. The committee reports the bill favorably. The bill requires a commercial Internet website and online service operator to notify consumers of the collection and disclosure of personally identifiable information to third parties, and to provide the information disclosed free of charge on a verified request. An operator must respond within 60 days and cover disclosures in the prior 12 months. An operator that sells the information must post a link enabling a consumer to opt out of the sale without establishing an account. The Attorney General has sole authority to enforce a violation of the bill.

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     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                   SENATE, No. 332

 STATE OF NEW JERSEY
                       DATED: JUNE 9, 2022

    The Senate Commerce Committee reports favorably Senate Bill
No. 332.
   This bill requires a commercial Internet website and online
service operator (operator) to notify consumers of the collection and
disclosure of “personally identifiable information,” as that term is
defined in the bill, to third parties. An operator that collects through
the Internet the personally identifiable information of a consumer is
to provide on its Internet website or online service notification to a
consumer that includes, but is not limited to:
   1) the categories of the personally identifiable information that
the operator collects through the Internet website or online service
about a consumer who uses or visits its commercial Internet website
or online service;
   2) all third parties with which the operator may disclose a
consumer’s personally identifiable information;
   3) whether a third party may collect personally identifiable
information about a consumer’s online activities over time and
across different commercial Internet websites or online services
when the consumer uses the Internet website or online service of the
operator;
   4) a description of the process for an individual consumer who
uses or visits the commercial Internet website or online service to
review and request changes to any of his or her personally
identifiable information that is collected by the commercial Internet
website or online service of the operator;
   5) the process by which the operator notifies consumers who
use or visit the commercial Internet website or online service of
material changes to the notification required to be made available
pursuant to this subsection, along with the effective date of the
notice; and
   6) information concerning one or more designated request
addresses that a consumer may use to request information under the
bill.
   This bill requires that an operator that discloses a consumer’s
personally identifiable information to a third party is to make the
following information available to the consumer free of charge
upon receipt of a verified request from the consumer for this
information through a designated request address: the consumer’s
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personally identifiable information that was disclosed; and the
names and contact information of the third parties that received the
consumer’s personally identifiable information. An operator that
receives a request from a consumer is to provide a response to the
consumer within 60 days of its verification and is to provide the
information for all disclosures of personally identifiable
information that occurred in the prior 12 months.
   The bill provides that an operator that collects the personally
identifiable information of a consumer through its commercial
Internet website or online service and sells the personally
identifiable information of the consumer through the Internet is to
clearly and conspicuously post a link on its commercial Internet
website or online service, or in another prominently accessible
location the commercial Internet website maintains for consumer
privacy settings, to an Internet webpage maintained by the operator,
which enables a consumer, by verified request, to opt out of the sale
of the consumer’s personally identifiable information. The method
in which a consumer may opt out shall be in a form and manner
determined by the operator, provided that a consumer is not to be
required to establish an account with the operator in order to opt out
of the sale of a consumer’s personally identifiable information.
   An operator is to be prohibited from discriminating against a
consumer if the consumer chooses to opt out of the sale of the
consumer’s personally identifiable information. The provisions of
the bill are not to prohibit the operator’s ability to offer consumers
discounts, loyalty programs, or other incentives for the sale of the
consumer’s personally identifiable information, or to provide
different services to consumers that are reasonably related to the
value of the relevant data.
   Further, the bill prohibits an operator from discriminating against
or penalizing a consumer if the consumer chooses to opt out of the
disclosure of the consumer’s personally identifiable information.
   The provisions of the bill are not to apply to certain types of
information and institutions listed in the bill.
   Nothing in the bill is to require an operator to re-identify de-
identified data or collect, retain, use, link, or combine personally
identifiable information concerning a consumer that it would not
otherwise collect, retain, use, link, or combine in the ordinary
course of business.
   The Attorney General is to have sole authority to enforce a
violation of the bill.
   This bill was pre-filed for introduction in the 2022-2023 session
pending technical review. As reported, the bill includes the changes
required by technical review, which has been performed.


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