Court Rules
All enforcement actions
Warning LetterLow Risk

NJ Division of Consumer Affairs Warns Auto Dealerships on Data Deletion Law

auto dealershipsJuly 28, 2025New Jersey Attorney General

Summary

The New Jersey Division of Consumer Affairs sent warning letters to over 3,000 auto dealerships reminding them of the state's data deletion law, which requires dealerships to offer to delete personal data from vehicles when accepting them for resale or lease. Failure to comply can result in fines of $500 for first offenses and $1,000 for subsequent offenses, aimed at preventing unauthorized access to sensitive consumer information stored in vehicle infotainment systems.

Remedy

Dealerships must offer to delete consumers' personal data from vehicles by following manufacturer-specified techniques or performing a factory reset. They are permitted to charge a reasonable fee for this service but must disclose it in advance, and must also advise consumers that they may delete the data themselves or through another vendor.

Corrective NoticeData Deletion

Contract Impact

In-house legal teams should review customer sales and lease agreements (especially trade-in or buyback terms), vendor service agreements (e.g., with detailing or tech service providers), and any data processing agreements involving vehicle data. Key clauses to examine include data deletion obligations, data retention schedules, consent mechanisms for personal data processing, and breach notification provisions related to infotainment systems. Changes may be needed to explicitly require offering data deletion services upon vehicle acceptance for resale or lease, define standardized procedures for wiping infotainment systems, update privacy notices to reflect deletion rights under New Jersey law, and incorporate compliance warranties or indemnities to mitigate fines of $500-$1,000 per violation.

Contract Search Terms

data deletion offervehicle data erasureinfotainment system clearanceresale data removal requirementlease return data deletionconsumer data deletion rightdata retention policy for vehiclesbreach notification for vehicle dataprivacy policy for connected carsdata sanitization clause

Laws Cited

New Jersey data deletion law

Violation Types

Entity Details

Entity

auto dealerships

Also known as: Auto Dealerships

Industry

Automotive

Official Sources

Source Evidence

Entity Name
"auto dealerships statewide"
Laws Cited
"the New Jersey data deletion law"
Violation Types
"mandates that dealerships offer to delete consumers’ personal data when accepting vehicles for resale or lease."

Related Enforcement Actions

NJ

King Distribution LLC and 17 related retail businesses

$100K

New Jersey Attorney General Jennifer Davenport and the Division of Consumer Affairs announced a Consent Order with King Distribution LLC and 17 related retail smoke shops, resolving allegations that the companies illegally sold flavored vapor products in violation of New Jersey’s consumer protection laws. The Consent Order imposes a $100,000 civil penalty, requires reimbursement of $22,279 in investigation costs, and prohibits the companies from selling or distributing flavored vapor products in New Jersey. The enforcement action is part of New Jersey’s ongoing efforts to protect youth from flavored vape products, which have been permanently banned in the state since January 2020.

NJ

Titan Macro Finance

The New Jersey Bureau of Securities issued a Cease and Desist Order on April 30, 2026, against Titan Macro Finance for operating an investment fraud scheme via WhatsApp and Instagram that defrauded at least one New Jersey investor of $64,000. The scheme involved unregistered broker-dealer activity, fake trading profits, and undisclosed fees to access investor funds. The action was coordinated with the California Department of Financial Protection and Innovation, which issued a similar order against the entity for violating California’s Commodity Code.

NJ

Meta Platforms, Inc.

New Jersey Attorney General Jennifer Davenport and the Bureau of Securities issued a public warning to state residents about fraudulent investment schemes proliferating on Meta-owned platforms including Facebook, Instagram, and WhatsApp. The alert details common scam tactics such as pump-and-dump schemes, confidence scams, and fraudulent cryptocurrency offerings, and provides tips for residents to avoid victimization. No enforcement action against any entity was announced in this release.

NJ

New Jersey Landlords (general population, no specific entity named)

New Jersey Attorney General Jennifer Davenport led a bipartisan coalition of 27 state attorneys general in submitting a comment letter to the Federal Trade Commission urging federal rulemaking to regulate hidden and deceptive rental housing fees. The AG also issued guidance clarifying New Jersey’s new $50 rental application fee cap, effective May 1, 2026, warning that deceptive fee practices may violate the New Jersey Consumer Fraud Act. No specific enforcement action against a named individual entity was announced, with enforcement of the fee cap set to begin May 1, 2026.

NJ

NCL Bahamas, Ltd.

$2.0M

New Jersey Attorney General Jennifer Davenport announced a multistate settlement with NCL Bahamas, Ltd. (Norwegian Cruise Line) resolving allegations of deceptive sales practices and unfair cancellation, refund, and future cruise credit policies during the COVID-19 pandemic. The settlement requires NCL to pay $2 million to participating states, implement employee training and management approval processes for sales communications during disasters, and prohibits deceptive sales statements and prioritizing sales over consumer health and safety. NCL has already issued over $3 billion in refunds and future cruise credits to consumers nationwide related to the underlying allegations.

NJ

Ibelis Gonzalez

Ibelis Gonzalez, a 46-year-old Jersey City resident, was indicted on charges including second-degree theft by deception, second-degree impersonation/theft of identity, and third-degree false government documents. She is alleged to have used fake identification to obtain debit cards in six victims' names, stealing approximately $86,840 from their bank accounts between May and June 2024. The case is being prosecuted by the New Jersey Division of Criminal Justice, with potential maximum fines of $150,000 for second-degree charges and $15,000 for third-degree charges.