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AI Laws in Madison, New Jersey
As of 2026-08-12, AI Laws USA tracks 29 AI rules that apply to people and businesses in Madison, New Jersey: 10+ federal protections, 18 New Jersey state-level rules, and 1 local Madison ordinance. Coverage is strongest on automated decision-making, consumer protection, government use of AI, and AI disclosure and transparency. 12 of these rules are already in effect. Each entry below links to its official source.
Madison local AI rules (and Morris County)
1 local AI rule specific to Madison, New Jersey or Morris County.
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In effect Stronger protection
Madison NJ Ordinance 27-2026 (Data Center Ban)
Madison, NJ · Effective 2026-06-16 · Borough of Madison, N.J., Ordinance No. 27-2026 (adopted June 16, 2026)
The Borough of Madison, New Jersey's Common Council unanimously adopted Ordinance 27-2026 on June 16, 2026, amending Chapter 195 of the borough's land development code to prohibit data centers as a use within the borough. Madison operates its own municipal electric utility and cited energy, water, and infrastructure concerns. The borough is the latest in a growing wave of New Jersey municipalities to permanently ban data center facilities.
New Jersey-level AI rules most relevant to Madison
18 New Jersey state rules apply to residents and businesses in Madison. Showing the 8 most relevant to Madison's local picture; 10 more are on the New Jersey jurisdiction page.
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Enacted (not yet in effect) Moderate protection
NJ Forbidding the Algorithmic Inflation of Rent (FAIR) Act
New Jersey · Effective 2027-07-20 · Forbidding the Algorithmic Inflation of Rent (FAIR) Act, N.J. P.L.2026, c.43 (A3497/S451), signed July 20, 2026
New Jersey Governor Sherrrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act on July 20, 2026, making New Jersey the first state to ban landlords from using algorithmic revenue-management software that coordinates rent-setting using nonpublic competitor pricing and occupancy data. The law, effective July 20, 2027, prohibits residential landlords from using or paying for such software and from receiving pricing recommendations derived from competitors' nonpublic data. RealPage and similar tools are directly targeted.
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Enacted (not yet in effect) Moderate protection
NJ Fair Pricing and Transparency Act S3952 (2026)
NJ · Effective 2027-07-23 · N.J. S3952 / A3929 (222nd Legislature, 2026) — signed July 23, 2026; effective July 23, 2027
Governor Meredith Sherrill signed New Jersey S3952/A3929, the Fair Pricing and Transparency Act, on July 23, 2026, making New Jersey the third state to ban surveillance-based grocery pricing, following Maryland and Connecticut. The law prohibits retail food stores from setting individualized prices based on a customer's personal data, purchasing history, or tracked attributes. It also imposes a one-year moratorium on electronic shelf labels (ESLs). Effective July 23, 2027. Notably, the law includes a private right of action for injured consumers — the first state surveillance-pricing law to do so.
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In effect Limited protection
NJ Supreme Court GenAI Notice
NJ · Effective 2024-01-25 · NJ Supreme Court Notice (Jan. 25, 2024)
The New Jersey Supreme Court issued a binding notice requiring lawyers using generative AI to comply with the Rules of Professional Conduct, including verifying citations, protecting client confidentiality, and supervising AI output. Sanctions follow citation hallucination.
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Proposed / pending Proposed or pending
NJ Kids Code Act A4015 (2026)
NJ · N.J. A4015/S3413 (222nd Legislature, 2026) — cleared both chambers June 30, 2026; enrolled to governor
New Jersey A4015/S3413, the NJ Kids Code Act, is an Age-Appropriate Design Code bill modeled on the UK ICO Children's Code and California AB 2273 (CAADCA). It requires online platforms and services likely to be accessed by children under 18 to conduct data protection impact assessments, default privacy settings to the highest protective level for minor users, prohibit profiling children for commercial purposes without parental consent, and restrict design features that extend children's engagement. The Assembly cleared it 73-5-0; the Senate cleared it; enrolled to Governor Sherrill as of July 1, 2026. Governor Sherrill has not yet signed.
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Enacted (not yet in effect) Limited protection
S731/A796 — Data center ratepayer protection and grid-demand
New Jersey · Enacted 2026-07-07 · NJ S731/A796 (Data Center Fair Share Act), signed by Governor Sherrill July 7, 2026
New Jersey Governor Sherrill signed S731/A796 — the Data Center Fair Share Act — into law on July 7, 2026. The law requires large data centers (those with 100 megawatts or more of contracted electricity) to pay for the full amount of electricity they contract for, and to reduce or shift energy use during peak grid stress events. The law is designed to prevent large data centers from reserving grid capacity that ordinary ratepayers then subsidize.
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In effect Limited protection
New Jersey Data Protection Act
New Jersey · Effective 2025-01-15 · P.L.2024, c.9 (N.J. SB 332)
New Jersey's comprehensive privacy law grants residents rights to access, correct, delete, and port personal data and to opt out of data sales and targeted advertising. Controllers must get opt-in consent for sensitive data (health, biometric, precise location) and honor universal opt-out signals since July 2025.
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In effect Limited protection
NJ AG Platkin / DCR
NJ · Effective 2025-01-09 · NJ AG Platkin / DCR — Guidance on Algorithmic Discrimination and the NJLAD (2025-01-09)
13-page guidance affirming NJLAD applies to ADS-driven discrimination in employment, housing, credit, public accommodations. Launches Civil Rights and Technology Initiative and Civil Rights Innovation Lab.
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In effect Limited protection
NJ DOI AI Bulletin
NJ · Effective 2025-02-11 · New Jersey DOBI Insurance Bulletin 25-03 (2025-02-11)
The NJ Department of Insurance adopted the NAIC Model Bulletin on Use of Artificial Intelligence Systems by Insurers. Insurers licensed in NJ must maintain a written AI program with governance, risk-management, testing, third-party-AI oversight, and documentation controls. The bulletin operationalizes existing unfair-trade-practice and unfair-discrimination law as applied to insurers' AI use cases — underwriting, pricing, claims, fraud detection, and marketing.
Federal AI rules that apply in Madison, New Jersey
These federal protections apply everywhere in the United States, including Madison, New Jersey. Showing the 10 strongest and most recent.
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In effect Stronger protection
Bartz v. Anthropic
N.D. Cal. · Effective 2025-09-05 · Bartz v. Anthropic PBC, No. 3:24-cv-05417 (N.D. Cal.)
Authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson sued Anthropic over its use of pirated-book datasets to train Claude. In June 2025 Judge William Alsup ruled that training on lawfully purchased books was fair use. The piracy claims (LibGen ingestion) proceeded toward settlement; in September 2025 Anthropic agreed to a $1.5 billion class settlement covering ~500,000 works. Judge Alsup granted preliminary approval September 25, 2025 and final approval July 20, 2026. The appeal period runs through August 19, 2026; class members will not receive payments until at least end of 2026.
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In effect Stronger protection
Benavides v. Tesla (Autopilot)
S.D. Fla. · Effective 2025-08-01 · Benavides v. Tesla, Inc., No. 1:21-cv-21940 (S.D. Fla. Aug. 1, 2025)
A Florida federal jury found Tesla 33% liable in August 2025 for the 2019 death of Naibel Benavides Leon, in a crash involving Autopilot. The jury awarded $243M ($129M compensatory + $200M punitive); in February 2026 the court denied Tesla's post-trial motions and upheld the verdict in full — the first Autopilot wrongful-death verdict against Tesla.
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In effect Stronger protection
COPPA + 2025 Rule (childrens data)
United States · Effective 2025-06-23 · 15 U.S.C. §§ 6501–6506; 16 C.F.R. Part 312
COPPA requires online services aimed at children under 13 to get verifiable parental consent before collecting kids' personal data. The 2025 rule update — fully in effect since April 22, 2026 — adds biometric identifiers (like face templates and voiceprints, which matter for AI tools), requires separate parental consent before sharing children's data for targeted advertising, and tightens data retention limits.
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In effect Stronger protection
TAKE IT DOWN Act
United States · Effective 2025-05-19 · Pub. L. No. 119-12 (S. 146)
Makes it a federal crime to knowingly publish intimate images of someone without consent, including AI-generated deepfakes. Social media and similar platforms must give victims a way to request removal and must take the content (and known copies) down within 48 hours. The platform removal requirement became enforceable May 19, 2026, and the FTC has already begun enforcement.
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Blocked / in litigation Stronger protection
NetChoice v. Yost (Ohio)
S.D. Ohio · Effective 2025-04-16 · NetChoice, LLC v. Yost, No. 2:24-cv-00047 (S.D. Ohio Apr. 16, 2025)
Ohio's Social Media Parental Notification Act — requiring parental consent for minors' social-media use, including algorithmic feeds — was preliminarily enjoined on February 12, 2024, then permanently enjoined on April 16, 2025 when the district court granted summary judgment for NetChoice. The state appealed to the Sixth Circuit, which vacated the district court's injunction in 2026.
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In effect Stronger protection
Thaler v. Perlmutter (Copyright)
D.C. Cir. · Effective 2025-03-18 · Thaler v. Perlmutter, 130 F.4th 1039 (D.C. Cir. 2025)
The companion copyright case: Stephen Thaler sought to register a copyright with 'Creativity Machine' (his AI) as the author. The D.C. Circuit affirmed in March 2025 that the Copyright Act's human-authorship requirement is dispositive as a matter of statutory law. AI cannot be a copyright author under U.S. law.
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In effect Stronger protection
Thomson Reuters v. Ross
D. Del. · Effective 2025-02-11 · Thomson Reuters Enterprise Centre GmbH v. Ross Intelligence, Inc., No. 1:20-cv-00613 (D. Del. Feb. 11, 2025)
Thomson Reuters sued legal-research startup Ross Intelligence in 2020 for copying Westlaw headnotes to train a competing AI legal-research tool. In February 2025, Judge Stephanos Bibas (sitting by designation) granted summary judgment to Thomson Reuters on direct copyright infringement and rejected Ross's fair-use defense — the first definitive U.S. ruling on AI-training fair use. No jury trial occurred: a 2023 opinion had denied summary judgment and pointed toward trial, but the court invited renewed briefing and reversed course in the 2025 ruling.
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In effect Stronger protection
Louis v. SafeRent
D. Mass. · Effective 2024-11-20 · Louis v. SafeRent Solutions, LLC, No. 1:22-cv-10800 (D. Mass.)
SafeRent agreed in November 2024 to a $2.275M settlement and a five-year ban on using its 'SafeRent Score' for housing-voucher applicants, after a class action alleged its AI tenant-screening tool systematically denied housing to Black and Hispanic Section 8 voucher holders. The first major AI tenant-screening Fair Housing Act settlement.
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In effect Stronger protection
FTC Impersonation Rule (AI)
United States · Effective 2024-04-01 · 16 C.F.R. Part 461; 89 Fed. Reg. 15017
The FTC's Impersonation Rule lets the agency directly sue scammers who pretend to be a government agency or a real business — including those who use AI-cloned voices or generated images to do so. Civil penalties can reach $53,088 per violation. The FTC also issued a supplemental notice in February 2024 proposing to extend the rule to all individual impersonation.
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In effect Stronger protection
TCPA (AI voice calls)
United States · Effective 2024-02-08 · 47 U.S.C. § 227; FCC 24-17
Robocalls using AI-cloned or AI-generated voices are treated like other 'artificial voice' calls: callers need your prior express consent, must identify themselves, and must offer opt-outs for telemarketing. You can personally sue violators for $500 to $1,500 per illegal call.
Frequently asked questions about AI laws in Madison, New Jersey
Are there AI laws in Madison, New Jersey?
What federal AI rules apply in Madison?
Does New Jersey have an AI privacy law?
Are deepfakes illegal in New Jersey?
Can my employer use AI to screen me for jobs in Madison?
How do I report an AI law violation in Madison?
Are facial recognition cameras allowed in Madison?
Is Madison regulated by New Jersey's consumer privacy act?
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This page is generated from our open civic dataset. If you know of a Madison ordinance, county rule, or local enforcement action we should add, email feedback@ailawsusa.com or submit a correction. Every entry must include a verifiable source.