Penalty Amount
$3,500,000
New Jersey joined 31 other states and the FTC in a $3.5 million settlement with Lenovo for pre-installing VisualDiscovery ad software on laptops that created a 'man-in-the-middle' security vulnerability, intercepting users' encrypted data without adequate disclosure or opt-out mechanisms. The settlement requires Lenovo to improve transparency, obtain affirmative consent, provide effective opt-out tools, and implement a long-term security compliance program with independent audits.
Lenovo must pay $3.5 million total to the states, change disclosures about pre-installed advertising software, obtain a consumer's affirmative consent before enabling such software, provide a reasonable and effective means to opt-out, disable, or remove it, and implement and maintain a software security compliance program with initial and biennial third-party assessments for 20 years.
In-house legal teams should review vendor agreements with software providers (e.g., Superfish) for data sharing and security representations, customer end-user license agreements (EULAs) and terms of service for pre-installed software disclosures and consent mechanisms, and any data processing agreements. Specific clauses to scrutinize include those governing pre-installation of third-party software, data interception and security representations, consumer consent and opt-out procedures, and audit rights. Changes may be needed to mandate explicit, affirmative consent before enabling such software, require clear and accessible opt-out tools, implement mandatory security audits and compliance programs, and enhance transparency about pre-installed applications and associated risks.
Entity
Lenovo Inc.
Also known as: Lenovo
Industry
Technology"settlement with Lenovo Inc."
"$3.5 million settlement"
"violated state consumer protection laws"
"VisualDiscovery operated by acting as a local proxy, or "man in the middle," that stood between the consumer's browser and all Internet web sites that the user visited, including encrypted sites. This technique allowed the software to see all of a user's sensitive personal information that was transmitted on the Internet. Consumer information– including sensitive communications with encrypted Web sites– would be collected and transmitted to Superfish."
"Lenovo's failure to disclose the presence of VisualDiscovery on its computers, its failure to warn consumers that the software created a security vulnerability and its inadequate opt-out procedure violated state consumer protection laws."
A multistate coalition co-led by New Jersey won a federal court order rejecting the Trump Administration’s decision not to request funding for the CFPB. The order struck down that decision and directed the Administration to follow the law and fund the agency; no monetary penalty or privacy violation is described.
New Jersey’s Attorney General and Division of Consumer Affairs alerted the public that three synthetic kratom-related compounds became illegal to possess or sell in the state under a temporary federal scheduling order. The release describes a controlled-substance alert, not a privacy enforcement action, and identifies no company, privacy violation, or monetary penalty.
$2.3M
Laboratory Corporation of America Holdings agreed to pay $2,287,455 to participating states and strengthen its security and vendor-management practices following an investigation into the 2019 breach at its debt-collection vendor, AMCA. The breach potentially exposed information of more than 27.5 million people nationwide, including sensitive information belonging to approximately 10.2 million LabCorp patients.
$694.0M
New Jersey's Attorney General and Division of Consumer Affairs, along with 41 Attorneys General, reached a $694 million settlement with subprime auto lender Credit Acceptance Corporation over allegations it originated unaffordable loans its own systems predicted borrowers could not repay, employed aggressive debt-collection tactics, and failed to prevent deceptive vehicle-service contract and GAP product 'packing' by dealers. The multistate settlement stepped in after the CFPB permanently dropped its 2023 enforcement action against CAC in 2025. CAC will provide $60 million in cash restitution, $634 million in debt relief, an additional $15 million to the states, and implement injunctive lending reforms including loan off ramps, pre-loan disclosures, add-on packing safeguards, and a seven-year vehicle price cap. Note: this is a consumer-protection lending enforcement action, not a privacy matter; violation categories are best-fit mappings from the available taxonomy.
$650K
The New Jersey Attorney General and Division of Consumer Affairs announced that Match Group, Inc. will pay $650,000 and change its business practices to settle allegations that it misrepresented or failed to disclose its criminal background screening policies and practices to New Jersey users, violating the New Jersey Consumer Fraud Act and the Internet Dating Safety Act. Under a Consent Order, Match must accurately represent its screening policies, notify existing New Jersey members of updated disclosures within 150 days, and post clear and conspicuous disclosures and safety notifications about the limitations of criminal background screenings.
$96.5M
New Jersey and a coalition of states and territories obtained preliminary approval for a plan to distribute funds from settlements with generic drug manufacturers accused of conspiring to raise drug prices. The settlements total approximately $96.5 million, and eligible consumers may submit claims for compensation.