New Jersey enacts $1.5M data broker fees in national record
New Jersey has enacted a new law that imposes significant annual registration fees, reaching up to $1.5 million, on companies that sell or collect significant volumes of consumer data. The legislation is notable for defining 'data collectors' broadly, potentially capturing many businesses that were not previously classified as data brokers under existing industry frameworks.
Key Takeaways
- Annual registration fees are tiered into seven levels, ranging from $5,000 to a nation-leading $1.5 million based on data volume.
- The law applies to 'data collectors' with direct customer relationships, potentially capturing streaming platforms that sell user data.
- A strict ban on the sale of sensitive personal data took effect immediately upon the bill's June 30 signing.
- Non-compliance carries heavy penalties, including $2,500 daily fines for registration failures and $50,000 per record for sensitive data sale violations.
- The highest fee tier triggers for entities possesssing or selling records on more than 4.5 million New Jersey residents.
Why It Matters
This law represents a significant escalation in the cost of data-driven advertising and audience monetization. By including first-party 'data collectors,' New Jersey has effectively bridged the gap between third-party brokers and the broader streaming and digital media ecosystem. For platforms, this raises the overhead for operating in the state and may force a recalibration of data-sharing partnerships with measurement and ad-tech firms. With revenue generation cited as a key motivation for the fee structure, other state legislatures facing budget pressures may view this as a blueprint for high-margin regulatory fees. Stakeholders must now monitor whether this 'New Jersey model' triggers a fragmented, high-cost compliance landscape across other U.S. markets.
Additional Context
New Jersey's move arrives as state-level scrutiny of the data brokerage industry reaches a peak. Prior to this legislation, California’s $6,000 annual fee under the 'Delete Act' (SB 362) was the highest in the nation. Per Bloomberg Law and Wiley Law in July 2026, California's regime is focused on centralized consumer deletion via the 'DROP' platform, whereas New Jersey's A5328 prioritizes revenue generation and categorical bans on sensitive data selling. Vermont also updated its data broker statutes in June 2026, increasing annual fees to $900 and introducing a first-of-its-kind $20,000 surety bond requirement for registrants.
Regulators elsewhere are also tightening enforcement. In early 2025, the California Privacy Protection Agency (CPPA) launched investigative sweeps to ensure brokers were meeting registration deadlines, which carry $200 daily fines. Meanwhile, the Federal Trade Commission has actively targeted location data brokers, settling four major enforcement actions in 2024 related to the sale of sensitive location information. These converging state and federal efforts suggest that 'data collectors'—the specific new category defined by New Jersey—will face increasing pressure to verify third-party data sources and disclose internal monetization practices, regardless of their status as direct service providers.
Read full article at news.bloomberglaw.com
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