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

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 332, State of New Jersey, dated June 9, 2022, reporting the bill favorably. The bill requires a commercial Internet website and online service operator to notify consumers of the categories of "personally identifiable information" it collects and the third parties to which it may disclose it. On a verified request, an operator must disclose free of charge what information it shared and with whom, responding within 60 days and covering the prior 12 months. An operator that sells such information must post a link letting consumers opt out without creating an account, and may not discriminate against those who opt out; the Attorney General has sole authority to enforce 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 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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