New Jersey Governor Mikie Sherrill (D) recently signed A-5328 into law, a data privacy measure that establishes a registry for data brokers and regulates the sale of sensitive personal information. The legislation, which was introduced and passed by the Democratic-led Legislature during a budget session, is intended to restrict companies from selling demographic data such as race, religious beliefs, and location. However, representatives from both major political parties and consulting firms have raised concerns that the law’s broad language could inadvertently apply to political campaigns and the data services they use.
The law requires entities defined as data brokers to pay annual registration fees ranging from $5,000 to $1.5 million, with the specific amount determined by the volume of data acquired. In comparison, data broker registries in Texas and California require fees of $300 and $6,000, respectively. Additionally, the New Jersey statute includes a provision for a $50,000 penalty per record for violations involving the sale of sensitive personal information without meeting specific requirements.
Political consultants and party officials argue that these costs and potential fines could impede seasonal campaign activities, such as targeted digital advertising and door-to-door canvassing. Mark Jablonowski, CEO of the Democratic digital advertising firm DSPolitical, stated that the risks associated with voter data use could lead to less voter contact and reduced information delivery before an election. Christine Hanlon, Chair of the New Jersey Republican Party, commented that the lack of specific exemptions for political activities has created uncertainty for candidates and suggested that legal challenges to the law are possible.
The scale of the impact is nationwide, as political data brokers typically operate across state lines, managing records for hundreds of millions of people. If New Jersey’s regulations remain unchanged, they could serve as a precedent for other states seeking to tighten privacy controls, or conversely, as a case study for the inclusion of specific exemptions for political speech. The practical daily consequence for voters may be a change in the frequency and relevance of the political advertisements and communications they receive via mail, phone, and digital platforms.
Government officials have acknowledged the concerns Raised by the political community. A spokesperson for New Jersey Assembly Democrats stated that the bill was not intended to limit political communication and that the Legislature is reviewing the law to determine if amendments are necessary to protect First Amendment rights. The Sherrill administration is currently conducting a review of the statute and is expected to issue formal enforcement guidance in the coming months to clarify which entities and activities fall under the new regulations.