Bill Text: NJ A1732 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires businesses to notify customers concerning use of radio frequency identification systems that collect information about customers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Consumer Affairs Committee [A1732 Detail]
Download: New_Jersey-2010-A1732-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblywoman BONNIE WATSON COLEMAN
District 15 (Mercer)
SYNOPSIS
Requires businesses to notify customers concerning use of radio frequency identification systems that collect information about customers.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the use of radio frequency identification systems and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Radio frequency identification" or "RFID" means a method of identifying items of merchandise for sale to customers through the use of RFID readers that scan RFID tags attached to the items.
"RFID reader" means a device which emits radio waves to communicate to a RFID tag, which has one or more antennas attached to it, and which receives signals back from a RFID tag.
"RFID tag" means a microchip which is connected to one or more antennas, which is designed to pick up signals from, and send signals to, a RFID reader and which may be attached to an item of merchandise in the form of a bar code label applied to the surface of the item or on the packaging in which the item is contained, mounted as a device inside of the packaging containing the item or embedded within the item itself.
2. Any business in this State using a radio frequency identification system that includes the use of RFID tags attached to items of merchandise, in conjunction with the use of RFID readers that enable the business to collect information from RFID tags attached to the items, in order to gather, store, use or share information that could identify an individual customer shall:
a. post notices, at the point of sale and at other locations within the place of business, that display information in a conspicuous type-size format and in print that contrasts with the background against which it appears, to inform customers that such a radio frequency identification system is used within the place of business to collect information from customers who complete a transaction to purchase or rent an item of merchandise containing a RFID tag;
b. attach labels to any items of merchandise which contain a RFID tag in order to inform customers within the place of business that a RFID tag is attached to or contained within the items and that completion of a purchase or rental transaction for such items will result in the collection of information about the customer and disclosure of such information to the owner of the business; and
c. disable, detach or destroy the RFID tag at the time of completion of the purchase or rental transaction in order to prevent any further information from being collected through such tags about the customers.
3. A violation of section 2 of this act shall be an unlawful practice subject to the penalties applicable pursuant to section 1 of P.L.1966, c.39 (C.56:8-13) and section 2 of P.L.1999, c.129 (C.56:8-14.3).
4. The Division of Consumer Affairs in the Department of Law and Public Safety, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations necessary to implement this act.
5. This act shall take effect on the first day of the sixth month following enactment, except that the Division of Consumer Affairs may take such action in advance of the effective date as shall be necessary to implement the provisions of this act.
STATEMENT
This bill requires any business in this State that uses a radio frequency identification system to collect information about customers through the use of RFID tags attached to or contained within items of merchandise purchased or rented by customers to:
a. post notices at the point of sale and other locations within the place of business to inform customers that such a radio frequency identification system is used by the business to collect information about customers who complete a transaction to purchase or rent an item of merchandise containing a RFID tag;
b. attach labels to any items of merchandise attached to or containing a RFID tag to inform customers that a RFID tag is attached to or contained within the items and that completion of a purchase or rental transaction for such items will result in the collection of information about the customer and disclosure of such information to the owner of the business; and
c. disable, detach or destroy the RFID tag at the time of completion of the purchase or rental transaction in order to prevent any further information from being collected through such tags about the customers.
The bill provides that violations of section 2 of the bill shall be an unlawful practice subject to the penalties applicable pursuant to section 1 of P.L.1966, c.39 (C.56:8-13) and section 2 of P.L.1999, c.129 (C.56:8-14.3)
