Summary

S.B. 540 is an HTPA bill titled “Human Trafficking and Child Exploitation Prevention Act.” It makes it a violation of New Jersey’s consumer fraud act to manufacture, sell, lease or distribute any product that makes content on the internet accessible unless it “contains” digital blocking capability that makes any material that is obscene or harmful to minors inaccessible; and manufacture or distribute such a product to a minor unless the digital blocking capability is active and properly operating to make obscene material inaccessible. (Presumably they mean to sell to a minor, but it is not written that way.  It is not clear how a company manufacturers to a minor).

New Jersey’s harmful to minors law is unconstitutional.

An unlawful practice is punishable by a fine of up to $10,000 for a first offense and $20,000 for any subsequent offense.  Additionally, a violation can result in cease and desist orders issued by the Attorney General, punitive damages, and treble damages and costs to the injured.

Other obligations:  A person who manufactures, sells, offers for sale, leases, or distributes a product that makes content accessible on the Internet shall:
1.   make reasonable and ongoing efforts to ensure that the digital content blocking capability functions properly;
2.   establish a reporting mechanism, such as a website or call center, to allow a consumer to report unblocked obscene material or report blocked                          material that is not obscene;
3.   render that “revenge pornography” and sites that “facilitate prostitution” and “ sex trafficking” are inaccessible on the product.

“Revenge pornography” is not defined and New Jersey does not have a “revenge pornography” law.

Deactivation of filters:  Any digital blocking capability may be deactivated after a consumer:
1.   requests in writing that the capability be disabled;
2.   presents identification to verify that the consumer is 18 years of age or older;
3.   acknowledges receiving a written warning regarding the potential danger of deactivating the digital blocking capability; and
4.   pays a one-time $20 digital access fee.  Alternatively, a business can pay a $20 “opt-out” fee for each device.

The bill requires that a reporting call center be set up for reporting material that should be blocked but was not, and material that was blocked but should not have been. The attorney general or the consumer may bring a civil suit if any complaint about underblocking does not receive a response. Material that is blocked but should not have been must be unblocked within five days.  A consumer may seek judicial relief if it is not.

Failing to act on complaints is also subject to civil suit.

The bill is identical to A.B. 878.

Information

For more information on HTPA bills and why they are unconstitutional, visit our page on them.

Status

Introduced in the Senate, Referred to Senate Commerce Committee – 01/09/2018