The justices on Tuesday heard arguments over whether "Kyleigh's Law" violates privacy and leaves young motorists vulnerable to predators.
The 2010 law is named for a New Jersey teenager who was killed in a 2006 crash and is meant to aid police in enforcing restricted privileges for young drivers.
The state attorney general released a report last month in which only one incident was reported to police. A 17-year-old female whose vehicle had a red decal was stopped by a man in a dark car with flashing lights, impersonating a police officer.
An appeals court in 2011 upheld the law.
The state Supreme Court will decide the case later this year.
