November 2, 2025
New Jersey’s Data Privacy Act (NJDPA), in effect as of January 15, 2025, ushers in a new era for e-commerce compliance, particularly for regulated industries like cannabis and hemp. As regulators finalize rules—targeting privacy notices, children’s data, Data Protection Impact Assessments (DPIAs), and more—retailers face several complex requirements that rival those in California, Colorado, and Washington. This update provides an in-depth examination of NJDPA’s impact on cannabis e-commerce and practical steps for alignment with the new law and best practices for multi-state operators.
The NJDPA covers any business that processes the personal data of 100,000+ New Jersey residents (or 25,000+ if the business derives revenue from the sale of data). For cannabis, hemp, and CBD companies—especially those expanding into e-commerce—compliance is essential.
Retailers and brands must map every data touchpoint that flows through e-commerce and digital marketing platforms. Key risk areas include:
Cannabis and hemp e-commerce sites must verify that initial site entrance blocks underage access, often collecting visitor date-of-birth, location, or driver’s license data. Under NJDPA, this data is likely sensitive and requires robust consent and record-keeping.
Personal data collected through rewards programs (emails, purchase history, preferences) falls squarely under NJDPA. Enhanced privacy notices and clear opt-out options are mandatory for program enrollment and ongoing use.
Opt-in, granular disclosures are required for the collection or sharing of geolocation information used for local marketing, delivery radius restrictions, or curbside pickup.
If you serve targeted ads or use consumer profiling for personalization, you must perform a DPIA and honor universal opt-out signals. If you process sensitive or precise-location data for such targeting, affirmative, granular consent is mandatory.
NJDPA raises the bar for what constitutes valid consent:
Retailers should review all digital interfaces—checkout pages, loyalty program sign-ups, and customer portals—to ensure consent is captured in a compliant, auditable fashion. Now’s the time to upgrade consent UX, with clear, easy-to-read, and mobile-friendly dialogs.
The NJDPA requires a Data Protection Impact Assessment (DPIA) for activities likely to present a heightened risk to consumer rights. For cannabis and hemp retailers, triggers include:
What your DPIA should address:
Document DPIAs as living documents, updating them with business model or technology changes, and prepare them for submission upon request from the NJ Division of Consumer Affairs.
The NJDPA aligns with other state privacy regimes in carving out protected health information (PHI) that falls under HIPAA. However, most customer data collected by cannabis or hemp retailers (for marketing, loyalty, age-verification, or personalized recommendations) does not qualify as PHI. This means almost all data collected from e-commerce or non-medical programs falls within NJDPA’s scope and must be managed as described above (DataGrail explainer).
Key Takeaway: Do not assume health-related status or purchase history is exempt under NJDPA just because you operate in a regulated market. If the data hasn’t been generated or managed under the federal HIPAA regime, it’s likely covered.
Many multi-state operators are already implementing protocols for the California Privacy Rights Act (CPRA) and the laws in Colorado and Washington. NJDPA draws on and, in some ways, exceeds these models:
For multi-state operators, consolidating data inventories, harmonizing opt-out flows, and maintaining a unified DPIA process is the only sustainable strategy.
While NJ regulators are expected to take an active role in enforcement through the Division of Consumer Affairs and the Office of the Attorney General, businesses remain shielded until mid-2026 by a crucial 30-day cure period. Provided a business acts to remedy a violation after notification, enforcement action may be avoided. Don’t rely on this as a stand-in for robust compliance: this safety net will expire, and repeated violations draw increased scrutiny.
1. Map Your Data: Build a detailed inventory—covering age verification, rewards/loyalty, marketing, location-tracking, and customer communications.
2. Review and Update Privacy Notices: Ensure your disclosures are comprehensive, specific to collection points, and reflect real usage/retention.
3. Refresh Consent UX: Move to affirmative, highly transparent consent dialogs at all user touchpoints—including opt-outs for marketing, profiling, and sensitive data.
4. Prepare DPIA Templates: Identify high-risk operations now and develop DPIAs that address potential harms and mitigation, ready for regulator review.
5. Harmonize for Multi-State: Crosswalk your NJDPA controls with CPRA, Colorado, and Washington standards for cohesive, manageable compliance processes.
6. Monitor Regulatory Updates: Stay tuned to NJ Division of Consumer Affairs and NJCCIC for any final rule changes or additional guidance in 2025.
NJDPA is reshaping the privacy landscape for cannabis and hemp e-commerce operators in New Jersey and beyond. With its robust consent, opt-out, and DPIA requirements, staying ahead of compliance risk is more important than ever—especially before the cure period expires. Businesses that inventory their data, modernize privacy UX, and harmonize their protocols across states will be best positioned for 2025 and beyond.
For the latest regulatory updates, compliance resources, and state-specific guidance, visit CannabisRegulations.ai and ensure your business is audit-ready for the new era of privacy.
