An op-ed from a New Jersey political strategist and communications professional this week said more work is needed to refine a controversial data broker law signed by Gov. Mikie Sherrill.
The new law, which took effect immediately after it was signed on June 30, establishes one of the most stringent regulatory frameworks for the consumer data industry in the nation – and is already on the clock for changes because there was no exemption for political campaigns.
Scott Shields wrote in the Trentonian on Thursday that the law creates “the most expensive registry for data brokers” and a new category deemed 'data collectors,' with registration fees ranging from $5,000 to $1.5 million and penalties up to $50,000 per violation.
At the same time, NJBIA strongly opposed the law as being unnecessarily broad and too prescriptive, and deeming ordinary, consumer-facing businesses as data collectors.
“(It includes) companies that have direct relationships with their own customers, readers, or users but sell or license that information to specialized firms that develop broader insights and audiences,” Shields wrote.
“These arrangements help organizations without large data teams understand markets, measure results, and compete. That could pull many more organizations into an expensive and uncertain system, from a grocery store with a loyalty program to a local news publisher, an online clothing shop, or a neighborhood advertising agency, none of which would think of themselves as data brokers.”
But Shields also wrote that New Jersey can turn this “episode into an advantage.”
“States that provide clear protections while preserving responsible uses of data will be more competitive,” he wrote. “New Jersey can lead by clarifying who is covered, setting reasonable registration fees, establishing workable protections for small organizations, and adopting penalties proportionate to actual misconduct and harm.
“Rather than relying on narrow exemptions, we have an opportunity to strengthen the law for all New Jerseyans by protecting consumers while giving small businesses, nonprofits, publishers, and civic organizations clear, workable rules for responsible data use.”
To see Shields’ full op-ed, click here.
