What is the New Jersey Data Protection Act and How does it Affect Businesses?

New Jersey passed a new cybersecurity regulation in January 2025. This makes the state the latest to implement strong rules regarding people’s data and how it is protected. The new law is going to affect every company that handles personal information, with organizations having until the 15th of July to adapt to the latest regulations.

Some Sectors are Already Ahead of the Curve

In New Jersey, some sectors are already ahead of the curve when it comes to the protection of personal data. Banking establishments in the state commonly use 2FA along with encryption to ensure that user data is kept safe. Telecommunication companies often have to regulate the collection, use and disclosure of customer data as well, ensuring that they abide by the strict regulations that have been in place for some time. In other verticals, like iGaming, state-of-the-art methods are also already present. When you sign up with a real money online casino NJ, multifactor authentication and encryption help to ensure that user data is protected.

With casinos offering deals like 100% deposit matches up to $500, having this kind of protection is imperative. Welcome bonuses are very popular with new users, so sites need to be able to safeguard new information as sign-ups spike during promotional periods. Sites that handle this kind of data also have measures in place to stop unauthorized access to customer accounts, which helps to set the standard for online security.

With the upcoming NJDPA underway, businesses that operate in verticals like this are already well-positioned to meet the new requirements, as they have been following high standards for quite some time.

What Will the Data Protection Act Affect?

The NJDPA applies to businesses who either do business in New Jersey, or who target New Jersey when selling products or services. In other words, even international companies may find themselves subjected to the new rules. One thing to take note of is that it only applies to companies that handle personal data for 100,000 people or more. If you have a business that generates revenue from selling or sharing data, however, then the limit drops to 25,000.

One change in the law when compared to other states is that it doesn’t impose any limitations as to how much money companies can make when selling data. For some sectors, such as telecommunication, this is beneficial. With that said, companies who opt to sell data need to make sure that they are giving consumers the chance to opt out. To enhance protection for both businesses and residents, companies also need to limit the data that they collect to necessary things.

Security measures like this are helping to ensure that the bar is raised when it comes to online security, and it also encourages businesses to make sure that they are using encryption methods, in combination with other authentication strategies to keep their users safe. Many sectors do this already, but it seems that as time goes on, it is becoming the standard for security across the US.