Penalty Amount
$52,000,000
Consumers Affected
131,500,000
A multistate settlement with Marriott International for a data breach affecting 131.5 million guest records. Marriott failed to secure the Starwood network from 2014 to 2018, exposing personal information. The settlement includes a $52 million payment and requires Marriott to implement enhanced cybersecurity measures and consumer protections.
Marriott must pay $52 million to states, implement a comprehensive Information Security Program with risk assessments, data minimization, encryption, and vendor oversight, undergo independent audits every two years for 20 years, and provide consumers with data deletion options and multi-factor authentication for loyalty accounts.
In-house legal teams should review all vendor and customer agreements where Marriott processes or stores personal data, particularly those involving guest reservation systems. Focus on data security clauses to ensure they mandate a dynamic, risk-based approach to security controls, including regular risk assessments and encryption of sensitive data. Breach notification provisions must align with the multistate settlement's requirements and various state laws, specifying clear timelines and consumer remediation steps. Data processing and retention clauses should incorporate data minimization principles, limiting collection and storage to what is necessary for business purposes. Contracts may need amendments to include audit rights for security compliance and requirements for third-party security assessments.
Entity
Marriott International, Inc.
Also known as: Marriott
Industry
Other"Marriott International, Inc."
"$52 million"
"state consumer protection laws, personal information protection laws, and, where applicable, breach notification laws"
"failing to implement reasonable data security and remediate data security deficiencies"
$52.0M
A multistate coalition of 50 attorneys general, including New Jersey, reached a $52 million settlement with Marriott International, Inc. for two data breaches that exposed personal information of over 131 million consumers. The breaches resulted from inadequate cybersecurity practices at Starwood and Marriott networks. The settlement mandates comprehensive security improvements and monetary penalties.
$52.0M
A multistate coalition of 50 attorneys general led by New York AG Letitia James reached a $52 million settlement with Marriott International, Inc. over a 2014-2018 data breach of its Starwood subsidiary’s guest reservation database that exposed 131.5 million consumers’ personal information. The breach, which went undetected for four years, compromised contact details, dates of birth, passport numbers, payment card information, and loyalty program data. Marriott is required to overhaul its data security practices, implement new compliance measures, and allow customers to delete their stored data as part of the settlement.
$3.5M
Texas Attorney General Ken Paxton secured a $3.5 million settlement with Marriott International, Inc. following an investigation into a data breach of the company’s reservation database that exposed 131 million U.S. guest records. The breach included sensitive customer information such as contact details, dates of birth, unencrypted passport numbers, and unexpired payment card information. Marriott is required to implement enhanced data security measures, including zero-trust principles and regular security reporting to its CEO, as part of the settlement.
Connecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.
Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.
$400.0M
Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.