Category: Regulatory Counseling and Departmental Action

GoodRx Fined $1.5 Million for Disclosure of Users’ Personal Information to Third Parties Without Notice or Consent

On February 1, 2023, the Federal Trade Commission (FTC) filed a “first of its kind” enforcement action under the FTC’s Health Breach Notification Rule, 16 CFR Part 318, which offers several useful takeaways for all companies that collect and process a consumer’s personal information – not just companies that handle health-related data. The FTC’s proposed order seeks to impose a $1.5 million civil penalty against GoodRx, a digital health platform, for sharing the sensitive personal health and other information of millions of GoodRx users with various advertising platforms, including Facebook and Google, and failing to report these disclosures to consumers. According to the FTC complaint, GoodRx collects sensitive personal information from users and represents that it will treat users’ information in accordance with its privacy policies. Since at least 2017, the GoodRx privacy policy specifically stated that GoodRx “would never disclose personal health information to advertisers or any third parties.”  Yet for several years, GoodRx allegedly violated these promises “by sharing information with Advertising Platforms, including Facebook, Google and Criteo, about users’ prescription medications or personal health conditions” and “did so without notice to users, and without obtaining consent.” In addition, GoodRx monetized the personal health information it collected through the creation of advertising campaigns on Facebook and Instagram that targeted GoodRx users. In August...

New Jersey Makes History in Advancing Renewable Energy

Last month, the New Jersey Board of Public Utilities (NJBPU) made history when it awarded a combined 2,658 MW of offshore wind capacity to two wind energy companies. This award was the largest collective MW award in the United States to date, and it raised New Jersey’s total planned capacity to over 3,700 MW. This award is a significant step toward reaching Governor Phil Murphy’s goal of 7,500 MW of offshore wind by 2035 and 100 percent clean energy by 2050.

NJ Department of Health Issues Alternative Treatment Center Request for Applications

The New Jersey Department of Health issued a Request for Applications today that would license up to 108 Alternative Treatment Centers (ATCs) for the cultivation, manufacturing, and dispensing of medical marijuana. Unlike the currently licensed ATCs, this call for applications does not require a licensee to be vertically integrated. The Department will, instead, issue endorsements for the various functions: cultivation, manufacturing, and dispensary. In total, the Department will seek up to 24 cultivation endorsements, up to 30 manufacturing endorsements, and up to 54 dispensary endorsements. Licenses will still be issued regionally, with up to 38 licenses available in the northern and central region, and 32 licenses in the southern region. The number of endorsements by region is as follows: Northern Region Cultivation endorsements: 8 Manufacturing endorsements: 10 Dispensary endorsements: 20 Central Region Cultivation endorsements: 8 Manufacturing endorsements: 10 Dispensary endorsements: 20 Southern Region Cultivation endorsements: 8 Manufacturing endorsements: 10 Dispensary endorsements: 14 Applications will become available on July 1, 2019 and will be due on August 15, 2019. A pre-submission webinar will be hosted by the Department on July 16, 2019. Please contact us should you have any questions about the endorsement and application process.

Here for the Holidays – New Jersey’s Tax Amnesty Program

As a welcome end-of-year present for those with overdue taxes, New Jersey recently launched its tax amnesty program, which began on November 15, 2018 and will end on January 15, 2019. Tax amnesty is available only for State tax liabilities for tax returns due on or after February 1, 2009, and before September 1, 2017. The program offers a waiver of some penalties, Referral Cost Recovery Fees, or cost of collection fees and one-half of the balance of the interest that remains due as of November 1, 2018. My Gibbons colleagues, Peter J. Ulrich and Todd M. Kellert, wrote an article on the Tax Amnesty Program, which you can find here. If you have any questions, please contact us since the program is quickly coming to a close.

NJABC Suspends New Limited Brewery Rules

Less than two weeks after issuing it, the New Jersey Division of Alcoholic Beverage Control (NJABC) has suspended its Special Ruling that imposed new regulations on Limited Brewery Licensees. The Special Ruling released in late September included restrictions on, among other things, special events and entertainment at Limited Breweries. In its announcement, the NJABC stated that the suspension of the restrictions will provide the opportunity to engage in further conversations with craft breweries and other alcoholic beverage license holders about the impact of the Special Ruling. The NJABC is also poised to work with state legislators to determine whether new legislation is needed to update the law that prompted the Special Ruling.

NJABC Issues New Grand Opening Permit, Limited Brewery Rules

The New Jersey Division of Alcoholic Beverage Control (NJABC) has recently issued two notices to the regulated community – the first notice impacting all consumption licensees hosting a Grand Opening event (known as a “soft opening”) and the second impacting the operation of a Limited Brewery. Due to the highly regulated nature of alcoholic beverages and the recent announcement of these rules, licensees should be diligent in their compliance. The Grand Opening Permit authorizes an on-premise consumption licensee to sponsor a one-time private event on the licensed premises at its initial opening. With this permit, the NJABC recognizes that a new licensee may want to introduce itself to certain members of the community through a private event before its opening to the general public. The licensee must maintain a list of all individuals invited and when the invitation was accepted (no same-day invitations or “walk-up” invitees), and the list must be provided to the NJABC within ten days after the event. The licensee can offer an open bar at the event for no more than three hours (unless the permit authorizes differently), and the entire licensed premises must be closed to the public with clear and conspicuous signage that the premises is closed for a private event. The new regulations for Limited Brewery Licensees (those breweries with...

Applications Now Open for Six Additional Alternative Treatment Centers

New Jersey’s Department of Health is seeking applications for six new medical marijuana dispensaries, known as Alternative Treatment Centers (ATCs), to be located in the Northern, Central, and Southern regions of the State. Below is some critical information on the application process which closes on August 31, 2018. Why the Department Needs Additional ATCs The six current licensed ATCs are reaching their limit in terms of the number of patients they can treat. In March 2018, Governor Murphy and the Department added five additional medical conditions to the list of qualifying diagnoses eligible for treatment with medicinal marijuana. Among the conditions were two new types of chronic pain, as well as anxiety, migraines, and Tourette’s Syndrome. Since the addition of these conditions, the program has grown by over 7,000 patients and the total number is in excess of 25,000 people. What the New ATCs Can Do The six ATCs to be licensed will be vertically integrated and allow for the cultivation, manufacturing, and dispensing of marijuana. The Department’s objective is to have two licensees located in the Northern region (Bergen, Essex, Hudson, Morris, Passaic, Sussex, and Warren), two in the Central region (Hunterdon, Middlesex, Mercer, Monmouth, Ocean, Somerset, and Union), and two in the Southern (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, and Salem). Key Dates...

What’s a “Pocket Veto” Anyway? – A Guide to the End of New Jersey’s 217th Legislative Session

At noon on January 9, 2017, the New Jersey Legislature’s 217th session comes to a close. That means any bill not presented to the Governor for his consideration before then will become moot and must be reintroduced in the 218th session. But certain constitutional rules also apply to bills passed by the Legislature and presented to the Governor in the last days of the session. During the two year legislative cycle, the New Jersey Constitution (Art. V, §1, ¶14(b) and (c)) allows the Governor 45 days to either sign the bill or veto it, with the veto being either absolute or conditional. This time frame can be extended if the house of origin (the Senate or General Assembly) is not in session on the 45th day. If the Governor takes no action within the allotted time, the bill becomes law. Any bill presented to the Governor on or after November 25, 2017, cannot receive 45 days of consideration before the end of the session on January 9, 2018. The New Jersey Constitution (Art. V, §1, ¶¶14 (c) and (d)) provides special procedures for this situation: Any bills presented on November 25, 2017, must be signed by noon on January 9, 2018, or vetoed and returned to the Legislature by noon on January 8, 2018, or else the...

NJEDA Proposes Readoption and Changes to Administrative Rules

Notwithstanding recent headlines about attempts to “kill” off the New Jersey Economic Development Authority (NJEDA), reports of the NJEDA’s death are greatly exaggerated. On November 20, 2017, the NJEDA proposed for readoption with amendments the administrative rules for its assistance programs. This includes changes to the Grow NJ Assistance Program (the “Grow NJ Program”) that implement the recently enacted law creating incentive areas around colleges and universities; modifications to the submission dates for the Economic Redevelopment and Growth Program (the “ERG Program”); and revisions to the Angel Investor Tax Credit Program (the “Angel Investor Program”). Interested parties may submit written comments by January 19, 2018. The NJEDA is an independent State agency that finances small and mid-sized businesses, administers tax incentives to retain and grow jobs, revitalizes communities through redevelopment initiatives and supports entrepreneurial development by providing access to training and mentoring programs. We have previously written about some of the NJEDA’s programs, and the most important proposed changes to the NJEDA’s program rules are listed below. Grow NJ Grow NJ encourages economic development and job creation by offering tax credits to businesses looking to relocate to the State, or that are currently located in New Jersey but are in danger of leaving. The NJEDA’s proposed changes to the Grow NJ program rules would: Implement new incentive...

What You Need to Know About Federal Regulatory Reform

President Trump and the newly-elected Congress have made regulatory reform a main focus of their policy agenda. With Republicans controlling both the White House and Capitol Hill for the first time in over a decade, significant actions were taken within the first several weeks of coming into power that regulated industries should be aware of. Implementation of a Regulatory Freeze – The Trump Administration froze all federal rulemaking by issuing a policy memorandum to the Executive Branch departments and agencies. The memorandum declared that no regulations should be submitted “until a department or agency head appointed or designated by the President … reviews and approves the regulation.” The memorandum also required the Executive Branch agencies to either withdraw or postpone all agency regulations submitted to the Office of the Federal Register. The only exceptions to the regulatory freeze are for “emergency situations or other urgent circumstances relating to health, safety, financial, or national security matters” or “regulations subject to statutory or judicial deadlines.” Reducing Regulations for Domestic Manufacturing – President Trump directed the Executive Branch departments and agencies to support the expansion of manufacturing in the United States through “expedited reviews of and approvals for proposals to construct or expand manufacturing facilities and through reductions in regulatory burdens affecting domestic manufacturing.” A key component of...