Potential Legal Risks Regarding Recent Lawsuits Under New Jersey Law P.L. 2023, c.113 (Daniel’s Law)
March, 2024 - United States of America
In recent weeks, numerous companies across the nation have found themselves embroiled in legal proceedings due to alleged violations of Daniel’s Law, a newly enacted statute aimed at safeguarding the privacy of certain individuals and their families. These lawsuits, initiated by Atlas Data Privacy Corporation on behalf of approximately 20,000 covered persons, underscore the importance of understanding and complying with this legislation. We are currently defending some of these cases, which were filed in multiple New Jersey State Courts just last month.
Background:
Daniel’s Law, officially known as P.L. 2023, c.113 in New Jersey, seeks to shield the personal information of judges, law enforcement officers, child protective investigators, prosecutors, and their immediate family members from being disclosed online or through other means. The law empowers these individuals, referred to as “covered persons,” to request the removal of their information and prohibits its disclosure. Failure to comply within the stipulated timeline may result in significant penalties, including liquidated damages of $1,000 per violation, along with potential punitive damages and attorney’s fees.
Atlas Data Privacy Corporation’s Actions:
Atlas has begun to file a series of lawsuits asserting violations of Daniel’s Law, sending out thousands to tens of thousands of emails to companies nationwide requesting takedown notices for information deemed to be in violation of the statute. These emails, typically with the subject line “Data Subject Request – Redaction/Nondisclosure Request,” cite New Jersey law without explicitly mentioning New Jersey law P.L. 2023, c.113, making it imperative for companies to discern the nature of the request.
Legal Implications:
The broad language of Daniel’s Law has led to its application against a wide array of companies, not limited to traditional data brokers. Any entity found to be disclosing the information of covered persons, as broadly defined by the statute, faces the risk of litigation. The definition of “disclose” encompasses a multitude of actions, including but not limited to solicitation, publication, distribution, and advertisement, leaving little room for interpretation.
Federal vs. State Legislation:
It’s worth noting that while a federal version of Daniel’s Law exists, it is more narrowly drafted and does not permit the assignment of claims. As a result, we have not observed similar lawsuits being filed under federal jurisdiction.
Conclusion:
In light of the recent surge in litigation under New Jersey law P.L. 2023, c.113, it is essential for companies to proactively assess their compliance measures and respond promptly to any requests for information removal. For further guidance or assistance in navigating these legal challenges, please feel free to contact [email protected] or I can put you in contact with our Regulatory Compliance team who can assist you with preventative measures to ensure your company is in compliance.
As we continue to monitor developments in this area, we remain committed to helping our clients stay informed and protected in an ever-evolving regulatory landscape.
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